▶ 0:21:43and welcome Secretary Chris Wright to your first hearing before the Energy and Commerce Committee. Welcome, Secretary Wright. In your confirmation hearing before the Senate Energy and Natural Resources Committee, you stated three goals. Unleash American energy dominance, lead the world in innovation and technological breakthroughs, and once again allow for entrepreneurs to build in this country. This sentiment could not come at a more critical juncture.
▶ 0:22:12Around the world, adversarial nations like communist China are exploiting energy markets and critical minerals to advance their national interests at the expense of the security of the United States. Our own national uh nation faces an electric reliability crisis that could threaten the the everyday lives of hardworking Infrastructure development has been left at a virtual standstill after the regulatory onslaught of the previous All the while, we're in the
▶ 0:22:42midst of a critical race to lead the world in AI development. The stakes could not be higher, which is why the ambitious goals laid out under your leadership are so critical to the interest of our country. After five months on the job, your department has remained steadfastly committed to these efforts. Your department reversed course on the disastrous LG export ban and once again ensured our abundant natural resources can be utilized as a diplomatic tool for our allies abroad.
▶ 0:23:10To reduce unnecessary federal overreach, your department rescended dozens of burdensome and workable efficiency regulations and standards that the previous administration designed to advance as a one-sizefits-all approach to energy Over the last few weeks, the department issued necessary 202C emergency waiverss to continue the operation of base load power plants to correct grid reliability in regions across the country during the upcoming summer months.
▶ 0:23:40In just two weeks ago, the White House released the reinvigorating the na the nuclear industrialbased executive order which will empower DOE to expedite and promote the use of nuclear energy in the United States. Importantly, these efforts will leverage the bipartisan work of our advance act to fuel a domestic nuclear renaissance and power next generation industries.
▶ 0:24:06As you have documented, you are continuing your ongoing tour of all 17 national labs, our crown jewels, which will be critical in leading the world in technological breakthroughs. This includes the recent announcement of a new supercomputer at the Lawrence Berkeley National Lab that will be vital to the continued development of AI infusion energy.
▶ 0:24:29I'm encouraged that your department has been rightly focused on the energy needs of our growing AI industry and why it is so important for our nation and the world for the United States to win. Your depart department has also remained committed to President Trump's agenda to be stewards of finite taxpayer resources by aligning federal resources with high priority projects and eliminating wasteful spending.
▶ 0:24:54As we discussed cost cutting measures at your department, it is important to remember that the previous administration received over 100 billion in new funding and $400 billion in loan authority for the inflation reduction act and infrastructure investment and jobs act.
▶ 0:25:10The previous administration simply issued financial assistant awards in a haphazard manner that lacked In fact, in the 76 days between the election day and President Trump's inauguration, the department issued almost $100 billion in new loans compared to the $43 billion in loans issued over the lo own office's 20y year This level of government subsidies was irresponsible and unsustainable, focused on misguided priorities, and was
▶ 0:25:40often done to the detriment of free markets and private enterprises. The fiscal year 2026 budget reflects these priorities and will refocus the Department of Energy on its core mission as you continue reorganization efforts as is customary for incoming administrations. We look forward to your our continued work together to achieve common goals to unleash American energy dominance, lead the world in the next generation of industries and fuel economic prosperity throughout the country.
▶ 0:26:10I look forward to today's discussion and I yield back the balance of my time and at this time recognizes the gentle lady from Florida uh the ranking member of the subcommittee for five minutes for an opening statement. Well, thank you, Mr. Chairman. Good morning, Mr. Secretary. It's our job to hold you accountable and ask questions. And I appreciate you attending uh the briefing today to offer your budget. You know, the president uh promised to cut electric bills in half.
▶ 0:26:35Uh but utility bills are way up, as is the risk of a resurg inflation thanks to the administration's policies. It always sounded way too good that electricity bills would be cut in half, but hardworking Americans did not expect you to actively work to make their lives more expensive. Uh reach into their wallets and grab their hardearned cash. And that's effectively what your policies have done in just a few short months.
▶ 0:27:04And in addition to higher electric bills, the US DOE is actively killing jobs. The US Department of Energy, once the envy of the world for innovation, our national labs and focus on cleaner, cheaper energy, is killing jobs. Mr. Secretary, you inherited a Department of Energy that was advancing an energy manufacturing boom. 1,000 newer expanded factories across America, 400,000 goodaying jobs.
▶ 0:27:34Just over the past few years, America had a strategy to produce more energy, reshore jobs, modernize the grid, invent the energy technologies of the future, and build and scale them here in the United States. This is smart policy, especially as energy is central to our national security, but you seem happy to seed the next generation of energy innovation and leadership to our competitors like the Chinese Communist Party.
▶ 0:28:01We need you to answer uh why you and Republicans in Congress are intentionally sabotaging America's progress, constraining our supply, and fueling higher household energy bills. On top of it all, the administration is piling on arbitrary tariffs that's making the energy sector more expensive because tariffs lead to increased cost and disruptions, ultimately impacting both consumers and the broader energy market.
▶ 0:28:30DOE is supposed to be leading the energy supposed to be leading energy innovation and security from grid resilience to critical minerals to renewable power to next generation renewable power. But you and Elon Musk and Doge have taken a chainsaw to the scientists, experts, and congressionally mandated initiatives at DOE.
▶ 0:28:49Witnesses and experts testify before this committee consistently that we need to support expansion of electricity transmission infrastructure in the US because it's crit critical to providing affordable and reliable power. Yet the uh big ugly bill as we affectionately call it the billionaire tax break package rescends support for transmission facility financing electricity transmission planning mo modeling.
▶ 0:29:17It takes back the grants to facilitate the sighting of interstate electricity transmission lines. And recent studies have shown that a comprehensive approach to building transmission lowers costs for consumers. In the Northeast, average electric bills could decrease by more than onethird. A new report released yesterday uh finds that every $1 spent on transmission returns up to $4.70 in customer benefits.
▶ 0:29:44In addition, two weeks ago, you canled industrial demonstrations funded by Congress to cut carbon emissions and toxic air pollution from industrial sites and power plants. DOE claimed these projects failed to advance the energy needs of the American people. They're not economically viable. They don't return a positive investment uh for taxpayers. But that is not true. Mr. Mr.
▶ 0:30:06Chairman, I ask unanimous consent to enter into the record a report from the American Council for Energy Efficient Economy that finds the industrial demonstrations would bring $14 billion in private investment and keep industrial facilities competitive with countries around the world. Well, without objection, so ordered. This dysfunction at the Department of Energy is killing investment in America. Look at the Loan Programs Office, which House Republicans tried to kill are trying to kill in their big ugly bill.
▶ 0:30:37The LPO is exactly the kind of tool we need to provide lowcost financing to projects that traditional investors won't fund. Uh, however, since President Trump took office, companies, many of whom have spent years and millions of dollars to secure conditional LPO loan commitments, are walking away. They can no longer trust the Department of Energy to be a reliable partner.
▶ 0:31:00CoreP Power, who received a conditional loan to build a new lithium battery manufacturing facility, has canceled the project, resulting in 3,000 lost American jobs. Aspen Aerogels received a conditional loan to build a plant in Georgia to make thermal barriers for EV batteries. They've canled the plant and will instead expand production in China and Mexico. there. The list goes on and on.
▶ 0:31:26And you know, Americans expect policymakers like you to deploy taxpayer dollars wisely, spur cost-saving in innovations, and make people's lives better. But your proposed budget fails to advance that vision. And when an administration holds a vision based on propping up only dirty power sources, uh, we lose Americans capacity, America's capacity to innovate and drive costs down, which ultimately hurts American businesses and the American people.
▶ 0:31:55So, you have a lot to answer for today. I look forward to the exchange. I yield back my time. The gentle's time has expired and the chair now recognizes the gentleman from Kentucky, the chair of the full committee for five minutes for questions. Thank you. Thank you, Secretary Wright, for being here. We welcome you to the Energy and Commerce Committee. Uh, many people may not fully appreciate the functions that the department performs in the federal government and your responsibilities as energy secretary.
▶ 0:32:22You oversee a national security agency and an energy security agency. DOE has designed and produced every nuclear warhead in the US arsenal. It powers the nuclear navy. It plays critical roles in non-prololiferation, international uh nuclear security and other energy security missions. DOE is a worldclass science, engineering and technology agency. It is an environmental engineering and cleanup agency.
▶ 0:32:50It is an energy emergency support agency and produces essential energy information for our energy industry and public as well as employing the fastest computers in the world. It is its work is performed through a nation spanning complex of national labs, production sites and facilities and involves the largest contract workforce outside of the Department of Defense. Ensuring this agency operates efficiently can be a challenge as the committee's own oversight over the years has demonstrated.
▶ 0:33:21That said, successful management of DOE's missions and a focus on its core missions means America will be secure and stay ahead of our adversaries. You are taking charge of DOE at a critical time for the nation. Right now, we are fighting to achieve AI dominance. It is a technological race that we cannot afford to lose to China.
▶ 0:33:43The threat of China succeeding at our expense equals, if not surpasses, the threats we faced almost 90 years ago in the race to harness atomic energy, which America fortunately won. The success of the Manhattan project, a project that is in DOE's DNA, safeguarded our nation's security for two generations. We are confronting a similar treacherous time today. Over the past four years, our adversaries have been emboldened. China in particular.
▶ 0:34:13Here at home, our nation confronts tremendous new demand. Tremendous new demand for energy in a burning need to revitalize our energy sector. We need energy and more of it. We need to build out the types of energy that we can rely on to power our technological needs, to support our allies, and to build our economy. Against this backdrop, understanding how you plan to address the urgency of this moment is critical.
▶ 0:34:39Recent actions by the administration to supercharge the drive to restore our nuclear energy leadership, including at DOE, represent the kind of positive actions this nation needs. What will matter is how you execute these policies. So, it is important to understand how you plan to manage the agency and align its budget to effectively meet your priorities and responsibilities and to measure the results. Every new administration takes steps to align DOE structure to meet its priorities.
▶ 0:35:10President Trump did it in his first term. President Obama did it We should give you the flexibility to have the organization you need to be effective and to allow you the to find efficiencies in agency management. We should not lose sight of the reality that the Department of Defense today operates about 35,000 more contractors and employees than it did five years ago. Most of that increase in the past four years.
▶ 0:35:38The agency used to put out a detailed annual performance report, but the last administration did not produce those reports, limiting accountability for measuring the results of work. Restoring accountability on that front would be welcome. And there certainly is room to be more efficient and effective across the agency and the enterprise for the sake of taxpayer stewardship.
▶ 0:36:03Ultimately, what matters is aligning DOE to deliver the nuclear and energy security results that are most essential for the nation and to support the engineering and science that will help us sustain a prosperous future. I really appreciate your willingness to be here to testify. We appreciate uh you being here this morning and I will yield back. Thank you very much. The chairman yields back the balance of his time. The chair now recognizes the gentleman from New Jersey, the ranking member of the full committee for five minutes for an opening statement.
▶ 0:36:34Thank you, Mr. Chairman. Today we're here to discuss the Department of Energy's fiscal year 2026 budget request. But the destruction of our national energy policy had already started before we received this flawed and harmful budget. It started on day one when Trump signed disastrous executive orders that halted federal grants and propped up polluting fossil fuels.
▶ 0:36:56It continued with House Republicans passing the one big ugly bill that eliminates programs that are lowering energy costs and helping to build clean energy manufacturing here in America. Also, Republicans can give giant tax breaks to billionaires. And now we have a Trump budget that will increase household energy costs, prioritize oil and gas, undermine clean energy, and gut energy assistance programs. And at a time when energy demand is increasing, this budget will make it harder for our nation to meet the moment.
▶ 0:37:26So, Secretary Wright, welcome to the Energy and Commerce Committee. But I have to say, I've tried to get answers from you on a number of actions at DOE, ranging from staffing cuts to project delays and funding freezes, but every single letter I have sent has gone unanswered. When appearing before a different committee, you seem to indicate that you view responding to Congress as an optional part of your job. And I want to be clear, it's not, and responding to this committee is part of your responsibility to the American people.
▶ 0:37:55After all, you owe them an explanation of your actions over the last six months. The agency has forced Americans to pay higher energy bills to keep outdated and expensive coal plants online. It is revoking energy and water efficiency standards that lower energy bills for American families. It canled $3.7 billion in grants that would lower emissions from the industrial sector and create thousands of goodaying energy jobs. The Department of Energy also threw open its doors to Elon Musk and his Doge minions.
▶ 0:38:25Musk forced out more than 3,500 DOE staffers. And now the agency has lost experienced and valuable personnel with critical expertise. And now the Trump administration sends Congress a budget request that hollows out DOE even more, slashing funding by more than 25%. It slashes funding for the weatherization assistance program, zeros out grants for renewable grid integration and wind and solar energy, and cuts loan programs for advanced vehicle technologies and tribal energy.
▶ 0:38:55So, Mr. Secretary, in your confirmation hearing, you indicated that expanding the grid was, and I'm quoting now, important to securing and modernizing a resilient electricity grid to meet growing electricity demand," unquote. But your budget proposal rescends billions of dollars in investments in the nation's power grid, making it even more difficult for us to modernize and secure it for the future. The Trump administration and congressional Republicans claim to care about competing with China. I hear that over and over again.
▶ 0:39:24But every action that they take only leaves America further behind in the global energy leadership race. By freezing and cancelling investments in emerging clean energy technologies, the Trump administration is letting China win. By undercutting manufacturing projects set to build electric vehicles and solar panels here in the United States, the Trump administration is leaving the door wide open for our competitors. They're letting China further grow its own supply chains and its global market share.
▶ 0:39:53And we were on the verge of a clean energy manufacturing renaissance. And the Trump administration has ground it all to a halt. And the Trump administration allowed its reckless alliance with Elon Musk and his Doge minions to threaten the operations of the National Nuclear Security Administration and the Bonavville Power Administration. And now that that alliance between Musk and Trump, I guess, has come to an end with this ongoing war of words on social media.
▶ 0:40:19But still, the Trump administration now claims that Musk is only looking to support his financial interest. Well, they did not voice any concern from us. Very real conflict of interest when he was decimating our federal agencies or indiscriminately firing workers and all why covertly stealing American sensitive personal data. They didn't seem to care about it then. Now they say they care.
▶ 0:40:40But before I finish, Secretary, it looks like you and I agree on at least one issue, and that is that nuclear energy is worth investing in, and that the loan program's office has an important role to play. And that's something I hope you will reiterate with committee Republicans today who don't seem to share your view on this. In the one big ugly bill, they completely zeroed out funding for DOE's loan programs office. It also appears that even you have some concerns about this budget request.
▶ 0:41:09In testimony before the Senate last month, you asked Congress to send DOE the budget it needs, not the one you asked for. And so I question your own support for the budget that you are here to defend. So, I'm looking forward to finally getting some answers today. And with that, Mr. Chairman, I yield back the balance of my time. Thank you very much. The gentleman yields back the balance of his time. And this now concludes member opening statements. The chair reminds members that pursuant to committee rules, all members opening statements will be made part of the record.
▶ 0:41:38We want to thank our witness uh Secretary Wright for being here today and taking time to testify for the subcommittee. Mr. Secretary, you will have the opportunity to give an o opening statement followed by a round of questions from members. And again, of course, our witnesses, the honorable Chris Wright, Secretary of the Department of Energy. We appreciate you being here. And Mr. Secretary, we u uh look forward to hearing your opening statement. And you have five minutes. Thank you very much.
▶ 0:42:08Thank you, Chairman Lau, uh, Chairman Guthrie, Ranking Member Caster, and Ranking Member Palone. And members of the committee, it is an honor to appear before you today as Secretary of Energy to discuss the president's fiscal year 2026 budget request for the Department of Energy. Under President Trump's leadership, our priorities for the Department are clear.
▶ 0:42:33to unleash a golden era of American energy dominance, strengthen our national security, and lead the world in innovation. A reliable and abundant energy supply is the foundation of a strong and prosperous nation. When America leads in energy, we lead in prosperity, security, and human flourishing.
▶ 0:42:54America has a historic opportunity to secure our energy systems, propel scientific and technological innovation, including AI, maintain and strengthen our weapon stockpiles, and meet Cold War legacy waste commitments. The Department of Energy will advance this critical mission while cutting red tape, increasing efficiency, and ensuring we are better stewards of taxpayer dollars.
▶ 0:43:22The president's fisc year 26 budget will ensure taxpayer resources are allocated appropriately and cost-effectively. We will invest DOE's resources in sources and technologies that support affordable, reliable, and secure energy and provide a return on investment for the American taxpayers.
▶ 0:43:45We will return the department to its core mission and eliminate spending on projects that failed to provide such a return, failed to advance our energy needs, and fail the test of economic viability. It is deeply concerning how many billions of dollars were rushed out the door without proper due diligence in the final days of the Biden administration.
▶ 0:44:08DOE is undertaking a thorough review of financial assistance that identifies waste of taxpayer dollars, protects America's national security, and advances President Trump's commitment to unleash American energy dominance. As a result, we recently announced the termination of 24 projects totaling over 3.7 billion in taxpayer funded financial assistance.
▶ 0:44:34These projects failed to meet the economic, national security, or energy security standards necessary to sustain DOE's investment, and the taxpayers should not be forced to subsidize them. Instead, we are advancing a policy of energy addition, fully leveraging affordable, reliable, and secure sources that have powered our country for generations. The United States is blessed with an abundance of coal, oil, and natural gas.
▶ 0:45:03And our administration is committed to using them to meet growing energy needs of the American people. Every one of these resources was unleashed through the world changing power of American Our national labs are the engine that drives research and development to expand our energy dominance. We will prioritize research that supports true technological breakthroughs and maintains America's global competitiveness.
▶ 0:45:32America must play a leading role commercializing of reliable, safe and secure nuclear energy and we are taking steps to accelerate innovation in this sector. DOE is working to advance the rapid deployment of next generation nuclear technology including small modular reactors.
▶ 0:45:52I am proud to report that we have officially ended the previous administration's reckless pause on LNG export permits and have returned to regular order for reviewing and approving new permits. DOE will also work to replenish the strategic petroleum reserve, a national asset that protects our security in times of crisis. I want to thank this committee for prioritizing funding to refill the SPR in the one big beautiful bill.
▶ 0:46:22As well, we're advancing President Trump's pledge to lower the cost of living and expand choice by rightsizing DOE's approach to home efficiency standards and regulations. Under the president's direction, we've begun slashing more than 47 regulations as part of the largest deregulatory effort in history.
▶ 0:46:44These actions are projected to save the American people approximately 11 billion while restoring consumer freedom and lowering costs. The responsible stewardship and modernization of the nation's nuclear weapons system is paramount for this administration. DOE is focused on addressing critical upgrades for the US nuclear stockpile and maintaining our engine powerhouses for submarines and aircraft carriers.
▶ 0:47:11Both tasks will be even more crucial in the next few years. Our nuclear innovation as a nation began with the Manhattan project and the next Manhattan project is clearly a AI. DOE has a significant role to play in driving AI innovation for scientific disco discovery and national security.
▶ 0:47:33Our agency has worldclass high-performance computing capabilities, including four of the world's top 10 Harnessing our energy potential to power global AI leadership while meeting growing energy man will be the challenge of our time. But America doesn't back down from big challenges or big builds.
▶ 0:47:55As Secretary of Energy, I'm honored by the responsibility to help meet the American people's growing energy needs and lead the world in energy development. I appreciated the opportunity to work with many of you on this committee to unlock America's full energy potential and drive down costs for families with the one big, beautiful bill. and I look forward to continuing to work together to achieve President Trump's energy dominance agenda. Thank you for the opportunity to testify before this committee.
▶ 0:48:26Well, thank you very much, Mr. Chairman, for Mr. Secretary for your testimony today and we will now move into the question and answer portion of the hearing and I will begin the questioning and recognize myself for five minutes. Uh, one of the things I've asked over the last four years is the same question of our witnesses coming before us, Mr. Secretary, do we need to have more energy or less energy produced in this Unquestionably more energy.
▶ 0:48:56And you know, as uh we look at this uh you know, we're looking at a widening gap between our projected e electricity needs largely driven by the new data centers you pointed out and we also have a reshoring of domestic manufacturing, the amount of reliable energy entering the system to meet that demand. As you know, record levels of base load generation are prematurely retiring. How is the department viewing this existential threat? And what do you see as the potential consequences for not meeting the moment?
▶ 0:49:26Yeah, if we are to look at recent data, growth in electricity production and energy more broadly in China has been rapid. And in the United States, particularly in the electricity sector, we saw almost no growth in American electricity production during the four years of the last administration. Yet with almost no growth in production, we saw across the country an average 25% increase in electricity prices. This is clearly a pathway to losing the AI arms race.
▶ 0:49:56If we can't grow our electricity production and keep prices in check, um, America's in trouble. Our administration is entirely focused on unleashing private capital, getting the government out of the way to grow and expand our supply of reliable firm electricity. That's what AI needs. 24/7 365 electricity. But of course, that's what the American electricity grid needs as well.
▶ 0:50:23No, no one wants the lights to go out or electricity production to decline when when your kids on a ventilator or when your factory is running. We need reliable, affordable, secure electricity. We are meeting with commercial providers across the spectrum about how to build and enable the expansion of American electricity generation. Um, that's priority number one. We need to grow the supply of electricity even faster than the demand.
▶ 0:50:51That's the only way to meet the demands of AI and reshoring manufacturing and to stop the highly destructive and politically polarizing rises in electricity prices. There's a lot of momentum behind this increasing the cost of electricity, restricting the ability to develop or even operating the existing plants. So, it's a big challenge.
▶ 0:51:13the the as ranking member Caster mentioned, yeah, electricity prices have been rising fast under the last administration and stopping that on a dime is a tricky challenge, but it's a challenge we can and must meet. Well, thank you. Your department is undergoing a reorganization effort to align with priorities of administration and most effectively accomplish your goals of energy dominance, technological superiority, and fueling economic prosperity.
▶ 0:51:41Would you give us an update as to where things stand with the reorganization efforts and the number of staff that have departed the agency? Yeah, look, the Department of Energy is full of a bunch of tremendous, hardworking, committed men and women. um trying to better the direction for our country.
▶ 0:51:59But again, like with electricity prices, headcount of the department grew over 20% during the last administration with with only increasing costs of energy and no increase in the supply of electricity. Clearly, that's a trajectory we don't want to go on. So like with any business or any organization where you care about performance, we've got to critically look at what we do, how we do it, how we can be more efficient, and how we can concentrate limited resources on what matters the most.
▶ 0:52:30Um we have followed a uh careful, thoughtful way to look at how we're going to reorganize the department and to bring the headcount more align with a an appropriate budget for the times we're in. We have done this almost entirely through voluntary measures. So, a lot of engagement with people and we've had voluntary offers to give generous financial treatment for people that maybe it that that are choosing to move on to a to a different chapter in their career.
▶ 0:53:00Um these are hard and tough and this is still ongoing. There's there's significant time frame people have to choose whether this is the pathway they want to go or not. uh with the people will be moving from some uh offices to other offices to make sure we're appropriately staffed in every office. But I'm proud of the hard work of the team, some of the people working behind me and and many many more back at the department.
▶ 0:53:22I in the next few weeks uh we will probably get more clarity on exactly where the reorganization is going to end but I think it's been a great effort to align the people and the staffing with the mission we have at hand and to align our expenditures uh with the with the output of the department. My time has expired and I'll submit my other questions in writing uh to you.
▶ 0:53:48But at this time, I will recognize the gentle lady from Florida, the ranking member of the subcommittee for five minutes for her questions. Well, thank you, Mr. Chairman. Mr. Secretary, you've actively been throttling back energy production. You have uh been complicit in raising American families electric bills uh and gutting innovation.
▶ 0:54:09So, it's really hard to uh determine where to even start with this, but I'll start with an initiative that is very popular across the country that helps uh our neighbors back home save money, and that's Energy Star. It's a joint DOE, EPA initiative mandated in statute by Congress. In the past, it's been very bipartisan, but your budget request runs counter to law. It actually proposes to completely eliminate Energy Star. Uh, no one thinks that's smart.
▶ 0:54:39Actually, I I correct myself. The polluters and the utility companies that want consumers to use a lot more energy, they they like it. Um, but miss I'm going to offer for the record uh a letter from leading residential and real estate organizations that describes Energy Star as a key element of the all of the above strategy. It says electricity saved by Energy Star helps free up space on the grid needed so the US can lead the world to power and grow AI. Uh bring manufacturing back to our shore.
▶ 0:55:09It reduces Americans electricity bills. I'll offer that to you. U Mr. Chair and without objection so ordered. So, uh, Secretary Wright, in a press release, you said that DOE claims that when you eliminate Energy Star, you save Americans 11 billion dollars by rolling back energy efficiency standards. However, according to DOE's own estimates, eliminating those standards would increase Americans utility bills by more than 54 billion.
▶ 0:55:39So, how do you justify robbing Americans of 54 billion dollar in savings from energy efficiency standards? So, of course, increasing energy efficiency, which has been going on for 200 years, is great. If you can invest, you know, $1 in increasing energy efficiency and save many dollars uh of energy cost, people do that all day long, every day, and they've been doing it throughout human history, and certainly long before.
▶ 0:56:08So, how do you justify there was a Department of Energy? Because individuals and businesses should make the choice to evaluate those trade-offs. They do. There are no mandates in energy efficiency standards. There were appliances that people want to purchase. My my folks back home are replacing uh a lot of appliances because we were sucked by two hurricanes in a row and did real damage.
▶ 0:56:30And every time you say that you're and Republicans have been complicit on this, that you can't you can't you're not going to provide the information to consumers that they need to lower their electric bills at this time. That's that does real damage. We're not preventing any product being purchased by any consumer. Quite the contrary. Yes, you. Yes, you have. In eliminating Energy Star in the war on energy efficient appliances, this is the opposite of what you said. You said you want to be good stewards of taxpayer money, but you're not.
▶ 0:57:00You're asking people to pay more and taking the tools they need away from them. I'll move on to the industrial demonstrations because you said America needs to be focused on innovation and lead the world. You know, China China is doubling down on industrial uh sector innovation and decarbonization. In chi, in April, China announced 101 new demonstration projects, including lowcarbon steel, geothermal heat pumps, and green fertilizer.
▶ 0:57:28These those projects will receive, of course, direct support, uh expedited approvals, prioritization. That's how they work. So, the least that the American can do if we want to keep up our competitive edge is to provide strategic support. But you announced two weeks ago you're going to cancel those industrial demonstrations. You said these cancellations would strengthen our national security.
▶ 0:57:52Do you believe that allowing China to overtake the United States in these key sectors actually strengthens our national security? It's it's critical that United States lead in the technologies that matter. But you're taking you're taking the resources away from these kind of innovative companies. They've come to you. They've come to the Department of Energy. They are bringing their own capital. They're not doing it on their own. Uh and you're taking these tools away from them.
▶ 0:58:21Uh kind of like pulling the rug out from under them and seeding this to China. Why do you think that's a good idea? If American taxpayers invest a dollar and the potential return on that dollar is a penny or maybe a dime, that's not a good expenditure of American dollars, and it's certainly not the pathway to win in a competitive marketplace. Now, you said you're all for energy dominance, but it it you're doing the opposite.
▶ 0:58:45You're taking a hatchet to what makes America strong and what makes America great, and that's innovation, and doing it in partnership with our private businesses. Uh, I think it's a recipe again for higher electric bills for our families and businesses back home and it's a recipe for uh for seeding uh ground to China that we're not going to put up with. I'll yield back. The gentle's time has expired and the chair now recognizes the gentleman from Kentucky, the chairman of the full committee for five minutes for questions.
▶ 0:59:15Thank you, Mr. Chair. So, Mr. Secretary, we talked AI and we talked um throughout this this uh committee. My understanding is we talked about decarbonation of China. The the one concern on AI and defeating China AI is the the big vast delta of China's expanding industry se energy sector in our flat growth in energy and my what is kind of the components of China's growth in energy? My understanding they they have strong use of coal.
▶ 0:59:42Yeah, but by far the biggest source of electricity in China is coal. So would China be the world leader in No, China is definitely not the world leader in decarbonization. Yeah. In fact, thank you for going back to that point. The there there's one leader in decarbonation decarbonization that by far leads the world and that's the United States of America.
▶ 1:00:05U we we have we have reduced global greenhouse we've reduced greenhouse gas emissions more than the next five countries after us combined. But and these reductions at the same time using coal as our energy generation as well. You can do CL in a clean way. My guess is China is probably not the leader in clean coal that we are. Correct. And our decarbonization was driven by market forces, not by government programs or incentives. They've had actually a relatively small role.
▶ 1:00:31The much bigger impact of government subsidies and involvement in our energy sector is to drive our energy prices up. And when you drive our energy prices up, you don't make things in the United States. They get offshored and mostly to China. Thanks. And so um so you wouldn't hold China up as a example of decarbonizing the the world? Absolutely not.
▶ 1:00:53And if we if we dismiss what they're doing such as we we so we need 152 gawatts of power over the next decade estimated we have 112 gawatts including coal and clean coal scheduled to come offline. What's your concern there that not only do we have to make up the 152 we need, we have to create the 112 that we're losing as well. Oh, it's a huge concern. Look, as I said, almost no growth in our electricity production over the last four years.
▶ 1:01:23You quoted some high numbers there. Over a 100 gawatts of needed new power to lead the re-industrialization of our country and lead in AI. And at the same time, we're going to retire wellworking, reliable, secure energy sources. It's if if you got to build a if you got to build a a mountain, the first thing to do is stop digging the hole. Exactly.
▶ 1:01:44So So if you look at that um during the the one big beautiful bill, we put have a provision in there because the concerns you hear from people investing in energy, you know, some energy is 20 30 year return on investment and when there's every two to four years the policy seems to be changing out of Washington, they're concerned. And to address that, one, I would love to see if we could all work together to have a bipartisan energy bill to show that that we can work together. And I hopefully that's still possible for us to do.
▶ 1:02:13Um, we're going to make that effort. I can guarantee both sides of that were going to work on that. Uh, but uh, but you also came up with a provision that we put in the bill to help as well. And it is really not really insurance companies can pay into, but can you describe that program a little bit for us? Yeah, look, energy infrastructure takes time to build.
▶ 1:02:37Maybe the most famous example in the United States was the Keystone XL pipeline to bring Canadian oil down to American refineries so we can turn them into high value products and sell them to Americans or export them overseas. Uh billions of dollars were spent on this pipeline and then an administration came in and just stopped it. Who's going to build long-term infrastructure if the next administration may just flush your investment? the the governor of New York did the same thing on pipelines that could lower the cost of energy in New York State and New England.
▶ 1:03:07Uh hundreds of millions of dollars were spent for these obviously beneficial pipelines and then the governor uh Cuomo in New York just stopped them. So the idea is we need to build confidence for people to make long-term investments again. And if the government comes and changes their mind, they at least give you the money back that you invested to try to help the American economy. That's only if the government decision is is what drives the loss of the investment. Right. That is correct.
▶ 1:03:34Look, I as a longtime entrepreneur, we make investments all the time. Sometimes they turn out great and sometimes they don't. That's the nature of business. But if your if your investment only fails because the government changed the policy. Well, the government should have a cost for changing that policy. Okay. Hey, Mer. I only have a few seconds left, but my understanding is uh over the past 5 years, DOE's expanded by 35,000 people, employees and contractors. Uh are you I'm sure you're looking at that and kind of what's your explanation of that and what you're doing with that?
▶ 1:04:04Yeah, like it's another just example of growing headcount, spending more money and hiring more people does not necessarily lead to positive results. And in fact, historically at the DOE, it's led to the opposite. We hired a lot of people whose main job was to try to stand in the way of energy development. Um that that's not a productive use of people or capital. Thank you. My time has expired. Appreciate you being here and I will yield back. Thank you. The gentleman's time is expired and yields back.
▶ 1:04:30The chair now rank recognizes the gentleman from New Jersey, the ranking member of the full committee for five minutes for questions. Thank you, Mr. Chairman. This is not my question, but I just have to say it's so ironic you're talking about um you know what the previous administration did um in terms of discouraging investment, which I don't agree, but I mean the irony right now is that you and and the Trump administration are doing everything you can to prevent any kind of moving forward on clean energy.
▶ 1:04:57Um and and so why would anybody uh you know you're killing all the clean energy initiatives around the country and so you know what's happening now which is is very sad is that what we really should be for is all of the above in terms of energy and my Republican colleagues claim that but that's not what you and they do. you you kill clean energy and you encourage fossil fuels.
▶ 1:05:19And this going back and forth back and forth is certainly not good for the future in terms of America's dominance or energy uh independence. But that's not what I wanted to ask, Mr. Secretary. I wanted to talk about the fact that the Trump administration has been laser focused on raising energy costs for Americans despite what the president campaigned on.
▶ 1:05:41And an example came in the last month when your department ordered two power plants burning coal, natural gas, and fuel oil to stay online mere days before they were scheduled to shut down for good. And just one problem, no one asked for these plants to stay open. Not their grid operators, not their utilities, and not their state regulators. So my question is, and you could just answer quickly, who made the decision to issue those orders under section 202C of the Federal Power Act? Was it you? I made those decisions. That's fine.
▶ 1:06:11I want to move to the next question. It's not fine, but I mean I I that's what I wanted to hear. Now, your department ordered the utilities running those plants to get permission from FK to charge customers to keep those plants online. According to the chair of Michigan's utility commission, those extra costs could cost homeowners and businesses tens of millions of dollars. And just in case anyone doubts these facts, I'd like to insert two articles on these orders into the record, Mr. Chairman.
▶ 1:06:38and one is from the New York Times and one is from the Washington Post that you know back up what I just said. So let me objection so order. Thank you Mr. Chairman. Mr. Secretary, your background is in the oil and gas se sector not the electric sector. So why do you think that you knew better than the grid operators, the utilities and the state leg uh regulators, you know, to to actually uh try to revive these even though no one seemed to care. Why are you increasing electricity prices for millions of people?
▶ 1:07:08Uh because you know better about what you think we should do with these plants. So, keeping the coal plant open in Michigan, in southwestern Michigan, 2 days after we issued the order to stop that plant from closing, there was a blackout in Mso. is the tightest reserve margin place we have in the in the in the country. You need to be able to keep the lights on. 2 days later the lights went out.
▶ 1:07:34The the it is hard to overestimate the that was a different part of the state. But in any case, same grid. It's going to increase monthly energy bills for millions of Americans. That's my point. And I want to ask one more question because you know we don't have a lot of time. I want to turn to a statement you made about the department's loan programs office.
▶ 1:07:52At a recent Senate hearing, you said, and I quote, "We do need to make sure we have funding available in the loan programs office because used judiciously, it's a way to leverage private capital to make things happen fast." Now, the Republican governors of South Carolina, Indiana have made it clear that achieving the administration's desired nuclear buildout will be impossible without the loan programs office.
▶ 1:08:15And I'd like to ask unanimous consent to enter into the record a letter from the South Carolina governor in which he states that without the existing federal tax credits and loan programs for nuclear power that make making financing new nuclear power generation possible that effort would be dead without the loan program. So let me just ask you do you think that without objection so ordered? Thank you Mr. Chairman.
▶ 1:08:37Do you think that it's possible if federal funding for the loan programs office is clawed back uh that um they're going to be able to accomplish this goal? That's not what the governor says. The there's a funding request in the proposed uh budget for the DOE to continue the loan program office. And yes, I do think it's a helpful tool to launch nuclear energy, which is why we're requesting money to do just that. Right. But in the House Republican Reconciliation Bill, they get rid of it.
▶ 1:09:06So that's inconsistent obviously. Correct. I'm not sure all of the funding is is is gone in the House reconciliation bill, but it is it says all un all unobligated funding. I mean, clearly it's going to the program. I mean, all I'm asking you to say is you'd like to see the program continue despite whatever the Republicans are doing here. Is that accurate? That's accurate. All right. Thank you so much. Does the gentleman yield back?
▶ 1:09:37Yes. Gentleman yields back the balance of his time. The chair now recognizes the vice chair of the subcommittee, the gentleman from Texas for five minutes for Thank you, Mr. Chairman and Mr. Secretary, we thank you for being here.
▶ 1:10:04Before I get to the questions, I want to note for the record that the Keystone pipeline would have come into my district over there on the Gulf Coast of Texas, 830,000 barrels of product a day. And I was unaware that there was billions of dollars poured in, I guess, engineering and developing that process before President uh Obama killed it. I actually got to meet him when I came in into Congress and he said he was considering the Keystone pipeline. And then of course he killed it.
▶ 1:10:31From my colleagues across the aisle, 830,000 barrels a day. If you took an 18 winner that holds about 7,000 gallons or 9,000 gallons if it's a small, medium, or large one, uh it would take uh you divide that into barrels of product a day. It's about 120 barrels per 18heer. It would take 5318 wheelers on the highway every day to move that amount of oil.
▶ 1:10:58And I thought our friends across the aisle were against emissions, those kinds of emissions, but I but I defer. So I'll let me go back to my questions. Mr. Right. US LG exports, which I have 3x LG plans in my district, are a critical part of President Trump's energy dominance agenda with my district serving as a major hub with Freeport LNG, Golden Pass, LNG, Port Arthur LG, and Shaneer Sabines Pass LG, which is actually across Louisiana
▶ 1:11:29border, that other foreign nation about six miles from us that we help them get their their product out into the Gulf. Since 2016, the US has become the world's largest LNG exporter, generating over 400 billion with the B dollars in economic growth and has supported an average of 273,000 direct and indirect and induced US jobs.
▶ 1:11:53However, I was concerned about the USR301 action which threatened to suspend LG export licenses for current as well as future facilities if certain vessel requirements were not met. So, I'm so grateful that the penalty was recently proposed to be removed. So, the question is, does the DOE have the sole authority over LG export licenses and what steps are we taking uh to further support and grow US LG exports? Mr.
▶ 1:12:23Secretary, yes, that the DOE is the entity with authority to grant or not grant LG export licenses. Um, we take it very seriously. We we have a lot of projects in the queue. We evaluate them thoroughly and expeditiously and it's the fastest growing United States export and and in fact natural gas is by far the fastest growing source of energy in the United States and around the planet.
▶ 1:12:50So it's it's huge economic opportunity for the United States and I'm I'm excited to see the huge capital private capital flowing in to grow the capacity. Sure. Well, I appreciate that. And of course, as you know, Texas is the number one wind energy state, as well as solar panel state in the country. 20% of our power comes from wind and 5% comes from solar. It's funny to hear my friends across the aisle talk about how we're trying to kill green energy. No, we're not.
▶ 1:13:15We're just recognizing that we need a stable, reliable, dependable, affordable energy base to be able to do these things. Um, let me move on. And you know, maybe I I wonder if you would be willing to testify at science, space, and technology committee if we could get you in there some time. I'm the committee chair, subcommittee chair for energy there, too. But we'll we'll we'll catch up on that a little later. Uh under President Biden, Mr.
▶ 1:13:40Secretary, the petroleum reserve strate reserve, as we discussed, 60% of it, my district, 60% of it has been unbelievably drawn down. It's reached its lowest level since 83 when Biden took office. The SPR contains 638 million barrels of oil. Today, it's million barrels, roughly half. In his 2025 inaugural address, President Trump made a commitment to refill the SPR.
▶ 1:14:10In this committee's reconciliation title, we authorize $2 billion to big crude purchases, conduct to uh buy to conduct repairs and buy back 7 million barrels from mandated sales. So, do you think the department's plan to refill the SPR will work with what we've done in the reconciliation package? It's a start. Absolutely.
▶ 1:14:35I mean the the immediate things we need to do is finish the repairs on the strategic petroleum reserve. It was drawn down so quickly that causes some damage to the infrastructure itself. So those those repairs are ongoing and and there are non-trivial amount of money to repair the SPR. Then we also have to spend some money to offset planned additional sales of oil that were also entered into to reverse those so we don't shrink the deposits and then additional funds will be used to fill it.
▶ 1:15:03So yes, I thank you for that funding and very quickly before I yield back, Mr. Chairman, if I can. So you actually have a plan to build up our energy and at affordable prices, not make energy higher. Thank you, Mr. Secretary. I yield back. The gentleman's time has expired and the chair now recognizes the gentleman from California's 50th district for five minutes for questions. Thank you, Mr. Chairman. Thank you, Secretary Wright, for coming. I appreciate seeing you today. I want to ask some questions about um transmission and the grid.
▶ 1:15:31In your first secretarial order, you committed to use all lawful authorities to strengthen the grid, including the backbone, our transmission system. Since 2005, FK has had the authority to act as the sole permitting agency for large multi-state transmission lines that your department deems to be in the national interest. But the federal government has not once used this authority due to litigation and endless bureaucracy regarding DOE's role in the process. That's Bush, Obama, Trump, Biden never used the authority.
▶ 1:15:58The backs stop permitting authority for transmission is also a fraction of the authority that FK has long had over natural gas pipelines and LNG which always get their one stop permitting shop at FK. So my question is would you support bipartisan efforts in Congress to streamline this permit authority for large transmission lines including would you be supportive of establishing permitting parody at FK between natural gas and transmission? Absolutely.
▶ 1:16:24the United States needs to build more energy infrastructure of all kinds and certainly including transmission lines. Okay. Um and I agree with my colleagues that we are uh we have a we're walking into a reliability and affordability crisis and I think to the extent that's because right now our grid is planned in a way that's segmented it costly and inefficient. The various regions across the country have no incentive to work together or ensure that we're meeting load growth in the most efficient and cost-effective way.
▶ 1:16:53Last year, the North American Electric Reliability Corporation, NERK, released a study showing that an additional 35 gigawatts of interreional trans transfer capacity, which are grid connections between among regions, would make the grid more resilient against extreme weather, would lower costs and enable us to meet load growth. The study also says that building interreional transmission maximizes the use of energy resources including peaker plants like natural gas by enabling regions to send power where it's abundant to where it's most needed.
▶ 1:17:22Do you agree with the results of that study and what what can you do with the department to help build more regional interreional transmission infrastructure and use DOE authorities to build more interreional transmission? Look there there's a so I can't speak to the specifics in that study. I do read a lot about this uh studies but I can't comment on that one but yeah are we better off with more known as as the seam study might have heard it that way.
▶ 1:17:48Yeah look look there's no doubt that our country and our grid would benefit from more transmission and it is a subject at at uh of active study and discussion at the DOE. The problem as you know the historical record of building transmission is just deathly long incredibly hard neon environmental protests have made it more than a decade to build anything. Very frustrating. We're working on that. We'd love to get that faster.
▶ 1:18:16And in the meantime, we're also working on things to take existing rightaways and either have dynamic rating on lines. They have a certain maximum power they can put through, but it depends on temperature and wind speed. I don't disagree with any of that. I think actually I'm working on NEPA right now myself because I I agree with you. But the issue I'm raising is the is the lack of incentive among regions to cooperate with each each other to build transmission that I think undisputedly would make um make our system more reliable and offer lower costs for consumers.
▶ 1:18:46And what I would love to get is the opportunity to work with you get your commitment that that's something you want to do and that you would work with us on on a bipartisan approach to getting that done. Would love to work with you. Would love to. and and and you're right, not just in the inter regional transmission, but there's a lot of just the wrong incentives in our electricity grid because the regulatory environment. So, I look forward to working with you uh in a bipartisan basis to figure out how to how to make electricity easier to move and and cheaper to buy. All right.
▶ 1:19:14And also, I think we have some different understanding of the facts of the production of energy. I just wanted to say the US produced record oil and gas in 2023, more than we've ever produced before. Uh, we always thought it was an irony that we produced more oil and gas under Biden and more renewables than under Trump and more renewables under Trump than we produced under Biden. Uh, and in fact, um, uh, electricity production is up about 5% over the last 5 years. We know we got to do more electricity production.
▶ 1:19:45The one thing I would just say, you mentioned um a concern about investors losing their investment in energy because of a change in government policy and maybe the government should reimburse them. We're about to do just that. There's 2600 gawatts of energy lined up to get connected. About 90% of that is non-emitting what we call clean energy. And um they depend on these uh the many of the tax incentives that have been laid out in existing law.
▶ 1:20:14And I think the administration is proposing not to phase those out but just to cut them off and a lot of that energy won't be realized because of that. I assume you're not suggesting we pay those people for changing the law like you just said. No, that look that the subsidies for wind for wind power the production gentleman he's got he's out of time. If you do in about 10 seconds that'd be great. Yeah. Those those subsidies are decades old. We absolutely should get rid of them as soon as possible. We're changing the law and hurting investors. like you said you were concerned about.
▶ 1:20:44It's removing subsidies. It's not preventing construction. It's current law. The gentleman's time has expired and the chair now recognizes the gentleman from Georgia's 12th district. Five minutes for questions. Uh thank you chair for holding this important hearing. Uh thank you uh energy secretary secretary Wright um and for being here to testify before the subcommittee and taking on this enormous challenge that we have before us at this uh such a time as this.
▶ 1:21:13Uh during the last administration our energy prices skyrocketed. uh and uh in fact uh if you were born after 1982, you had never experienced uh inflation greater uh than 2% in this country. So it was a great awakening and uh and a lot of that was costly regulations that made energy cost higher for our constituents.
▶ 1:21:40I'm glad to have an administration, the White House that's focused on unleashing our domestic energy production and focusing on being energy dominant. Um, free market competition is the only way to reduce inflation and to reduce cost. I'm proud to highlight that my district is home to Plant Vogel, the nation's largest and most advanced clean energy nuclear facility with units three and four now fully operational.
▶ 1:22:07Nuclear energy is critical for our nation's energy security. And as the Trump administration has issued executive orders promoting nuclear energy, I look forward to working with you and deploying our nuclear energy Uh, President Trump's unleashing American energy executive order directed the Department of Energy to safeguard the American people's freedom to choose from a variety of goods and appliances in lie of these mandates uh from the previous administration.
▶ 1:22:37Congress aided aided by repealing several Biden final rules that would have restricted consumer choice. Under your purview, how has the Office of Energy Efficiency and Renewable Energy refocused on core missions? Yes, we are refocused on core missions. And in fact, I was down in your great state uh not long ago celebrating the fact that a tankless natural gas hot water heater manufacturing company was not shut down.
▶ 1:23:06It would have been shut down with the Biden rule had gone into place. uh that that's exact providing the most popular lowcost efficient way to heat water but was deemed not worthy by the government removing a choice and raising up the price at which people would buy hot water heers. So I'm about choice and opportunity. Well, thank you. Thank you for uh advocating for us there.
▶ 1:23:32Uh it under the energy policy uh and comproation comp conversa conservation act DOE is required to review energy efficient standards of covered products no later than six years after the issuance of a final rule. Has this led to the weaponization of EPCA with the previous administration using it as a tool in its anti-fossil energy agenda?
▶ 1:23:58As this as this administration evaluates energy efficiency standards in the future, how will DOE prioritize consumers affordability and the letter of the law? Yes. So number one, the constraint is to follow the letter of the law, you know, and and Epka is a law. Uh I I might say unfortunately, but it's the law. So we have to work around that constraint.
▶ 1:24:21But yes, it has been weaponized to bring in all sorts of different devices or things people might use and decide that big brother, the government should decide how they heat themselves on their outdoor patio or their hot tub or every other part of their life. I think this is just the perfect example of government run a muck and getting involved in choices that are going to be made differently by different people. Yeah. And I think we heard that loud and clear. The American people want choice.
▶ 1:24:52Uh OPEC plus, mostly steered by Saudi Arabia, recently agreed to the third monthly hike in a row, driving oil prices lower as the cartels aim to reclaim their share of global markets. I'm concerned that OPEC plus is not just managing supply from member countries, but that there is a strategic and geopolitical intent that is detrimental to US producers. Uh we've got about 40 seconds. uh you and subsequently President Trump recently visited the Middle East.
▶ 1:25:23It it is great to see the Secretary of Energy promoting US energy on the global state again. Can you tell us more about the conversations that took place related to global oil markets? And I need to do that in about 20 seconds. Yeah. Well, two main topics were discussed. The the huge amount of capital they developed, their goal is to invest as much of that as possible in the United States into our energy infrastructure and other industries in our country. And we welcome that investment. And we discuss decadal long outlook for demand for energy.
▶ 1:25:53Just trying to base in reality what investments are needed today to supply energy dance demands a decade, two decades, four decades from now. There was almost zero dialogue on today's oil prices or supply and demand in the short run. Good. Thank you, sir, for your service to our country. And I yield back. Thank you. Gentlemen's time has expired and the chair now recognizes the gentleman from New Jersey's 8th district for five minutes for questions. Thank you, Chairman.
▶ 1:26:18Secretary Wright, this administration has made clear it wants to make America energy dominant. Is that correct? Yes. And wouldn't you agree that the best way to achieve energy dominance is by an all-ove approach to energy produ production? Just yes or no? I've never supported all of the above because if something's going to make energy more expensive and less reliable, I'm not for that. But okay, actually, let's walk through that.
▶ 1:26:47So, more expensive, less reliable. Is that correct? That's why you're not a proponent of all the above strategy, which would include renewable energy. Uh, all energy sources that will provide secure, affordable, reliable energy over the long term, I'm in favor of. I've worked in in solar, in geothermal, in nuclear, across the energy spectrum. I haven't worked in wind or coal, but almost every other energy source. All right, we'll keep moving.
▶ 1:27:13Would you agree that energy affordability is an issue important to so many Americans, including when it comes to their energy bills? Just yes or no? Oh, yes. Yeah, I agree. And would you agree that increased production of all types of energy, including renewables, helps bring down costs for consumers? Absolutely not. That is not at all how the marketplace has worked. Okay, let's keep going. Absolutely not. I'm going to make a note of that.
▶ 1:27:36Um, so do you know which states have been most successful in driving down energy prices for It it depends on the baseline where you begin. I I will tell you Florida over 15 years has had very little rise in their electricity price and California's more than doubled them. And you can see the dramatically different policy in those two states. So let's go with Texas.
▶ 1:27:59Earlier this year, the Energy Information Administration predicted that Texas was one of the few places in the country where energy prices were expected to decrease. Were you aware of that? Uh, I am I am aware of electricity price trends in Texas. Yes. And do you know where Texas ranks in terms of deployment of renewable energy sources? Uh, it would be the largest because you can build things in Texas. It's a dominantly natural gas powered grid, but they have a huge amount of wind power and solar power as well. That's exactly right.
▶ 1:28:29Texas leads the nation in wind production and is the second largest producer of solar power after California. In 2023, renewable sources provide almost 30% of Texas's total electricity generation over the past 10 years. Texas has seen electricity prices decline as solar and wind have grown Would you say that this decline in energy prices is good for Texans? Yes or no? Uh declining electricity prices is a good thing.
▶ 1:28:58The 200 plus people who died in the blackout in 2021 was a very bad thing. Agree agree with that. Would you agree that consumers in Texas are benefiting from lower energy prices that result from increased renewable energy production? I don't think that's a meaningful driver of reduced energy prices in Texas. Why is that? Because they when the more more energy production leads to lower prices. Isn't that generally the idea?
▶ 1:29:25Supply and demand only if you can store something. You have to match supply and demand at every instant on an electricity gate. You can't just put extra energy in a pot. It seems like has been successful at that because production has gone up with renewable energy. It accounts for about 30% of their energy production and consumers are seeing lower prices. Natural gas is the biggest source of electricity in Texas. Natural gas prices have gone down.
▶ 1:29:51It's also, but going back to the all the above, Texas has both legacy energy production and also cleaner renewable energy. And what you're seeing is lower prices. Is that not accurate? It just seems like that's just a truth that you don't seem to want to admit to. It's lower prices are good. Lower prices are good. And and and renewables at any penetration level are not necessarily ruinous.
▶ 1:30:15I'm just saying the drive down in Texas electricity prices has not been primarily driven by wind and solar primarily. But would you say it's a contributing factor? You're going to say zero. It's not a contributing factor at all. That's your testimony today. It has zero impact on the price for consumer. That's not my testimony. My testimony it's it's more complicated than you're putting it out there as. And I think it's simpler than you're making it seem. So let me ask you this.
▶ 1:30:40Despite Texas's success in embracing renewables and the real results of bringing energy prices down for consumers, are you still opposed to an all the above energy approach that includes renewables? Just simple yes or no? I'm not opposed to renewable energy at all. I don't use the term renewable because they're not renewable, but I'm not opposed to alternative energy sources. I've worked in them. I've invested in them. So, I'm not opposed to them. But we need to do them to lower prices and keep grids stable, not as as ways for wealthy people to to gather dollars from the government.
▶ 1:31:10Well, I that's a lot to unpack in the 5 seconds that I have, so I will leave it there. But I think your administration is doing a disservice to the people that want to see a growth in renewable, clean, alternative energy, and we should continue to invest in it because we've seen success in places like Texas. Thank you for being here. I yield back. Thank you very much. Gentleman's time has expired and the chair now recognizes the gentleman from Ohio's 12th district for five minutes for questions. Thank you, Mr. Chairman, and thank you, Secretary Wright, for being here today.
▶ 1:31:37Uh, I'll start off with, uh, US LG exports have been a gamecher for natural gas producers in Ohio, uh, the state where I represent, as well as our allies around the world. Opponents of LG exports often push the narrative that exports raise domestic natural gas prices. However, the vast majority of studies as well as Henry Hub data show the opposite. Boosting exports increases domestic production, which lowers the price for American consumers.
▶ 1:32:08In fact, while LG exports rose by roughly 14 BCF per day between 2016 and 2023, dry gas production jumped by 31 BCF per day. And despite total US natural gas consumption almost doubling from 2010 to 2023, the 2023 average natural gas price of $254 cents was the second lowest level in over 35 years, only exceeding 2020 pandemic levels. Mr.
▶ 1:32:38Secretary, can you talk about the potential of US LG exports, not only for our allies, but how boosting LG can keep natural gas prices low for the consumers here at home? Uh, thank you, Representative, and and I agree very much with your premise. I I 17 years ago, the United States was the largest importer of natural gas in the world, and we had over a thousand rigs drilling specifically to produce natural gas.
▶ 1:33:06Today that over a thousand rigs is only a hundred rigs drilling in the United States for natural gas. And as you pointed out, we've become the largest net exporter of natural gas in the world. This is technology. This is efficiency. And this is infrastructure that gets built to move natural gas at scale. All of those ultimately lower the cost to produce natural gas. They lower the cost to American consumers of what is today the biggest energy source in the United States.
▶ 1:33:3570% of total energy, not just electricity, but total energy consumed in the United States comes from two things, natural gas and oil. Um, and and so you're right, this growth in natural gas has not only been great for American consumers and businesses, but it's our fastest growing export. Within a decade, I think it'll be the largest export from the United States of America. The natural gas story has been a great story.
▶ 1:34:00Um, it's phased a lot of headwinds and a lot of political push back and battles in the in the on the way there, but it has been a great story of lowering costs for American consumers and giving greater security to our allies abroad uh and and growing the geopolitical influence of the United States. Thank you. And Ohio's been a leader in that, I should say, as well. Amen. Thank you, Secretary. I appreciate you putting Ohio out there. One of the greatest threats to affordability is not exports, but the lack of pipeline infrastructure, especially in the Northeast.
▶ 1:34:30As you know, expanding our pipeline capacity is a top priority for natural gas producers in Ohio and the Udica and Marcellis Shale. How is your department working with FK to prioritize natural gas pipeline development? Oh, active dialogues not just with FK, but across the government and and I think you pointed out a classic example. Why does the six states of New England all have expensive electricity and relatively expensive home heating? Just a lack of a pipeline.
▶ 1:34:57Tremendous gas resources in Pennsylvania, West Virginia, in Ohio that have changed the game for people living in those regions. But New York State has has historically stood in the way of building a new pipeline or expanding pipeline access through its state. I think we're going to change that. I hope we're going to see two pipelines under construction in the next 12 months, which would really lower electricity costs, home heating costs, and opportunities for businesses to expand in New York State, in New England.
▶ 1:35:27So, uh, building and of course, not just in New England. The United States needs a fair amount of new pipeline infrastructure. There are private developers and private capital that will fund it. to your point, we just need to have a more sane and reasonable regulatory environment to get certainty in a reasonable time frame to build these pipelines. But I I I support 100% your point. Thank you. Um with just 45 seconds left, so be uh watchful the time.
▶ 1:35:54U given your role as a secretary of energy and vice chair of the Natural Energy Dominance Council, I wanted to get your thoughts on an issue that presents a major threat to grid reliability, the broken interconnectional Q process. You have 30 seconds. Yes.
▶ 1:36:07Uh I think as we heard earlier 95% of the projects in the queue to get connected at FK are are are wind solar or batteries the vast majority of them have no chance of being built but you can just throw your name in the queue and you can clog up the queue with a million studies and it has led to inefficiencies. So we need to look at that process and make and prioritize projects that are impactful and make it move faster and more efficiently. And we have a bill that we'd like you to look at sometime. Thank you Mr. Chairman. I yel back.
▶ 1:36:37Thank you. The gentleman yields back and the chair chair now recognizes the gentle lady from Virginia fourth district for 5 minutes for questions. Uh thank you, Chairman LA. Um, Secretary Wright, as you may know, Virginia is the data center capital of the globe, but we're also the clean energy capital of the South.
▶ 1:36:55And I am particularly concerned about the Trump administration's impact on growing solar and wind projects in Virginia and how in the world we're going to meet our energy demands with the administration kneecapping solar. Um and your testimony to the contrary, experts agree that solar is the fastest, cheapest and cleanest source of energy now. And even Appalachian Power has an acknowledged that coal is becoming more expensive.
▶ 1:37:22Um has contributed to rising electric costs for their cons customers and their parent company has said that coal is not the most cost-effective choice for new investments and they relied heavily on coal for a very long time. But I don't think we're going to agree today on uh the benefits of of um wind and solar versus fossil fuels.
▶ 1:37:43So um I want to focus on what I have heard consistently from my constituents concerned about workforce cuts, grant funding freezes, and lack of communications from the department. Um, 75 clean city coalitions work under annual cooperative agreements with the Department of Energy to promote clean and affordable transportation fuel options.
▶ 1:38:07This is a program that has strong bipartisan support, but the coalitions are still waiting for notification of their contracts or signed financial agreements for the project period that started on April 1st of this year. Um, some of the coalitions have heard that the agreements are still under review.
▶ 1:38:27Um, and the Virginia Clean Cities Coalition has reached out to my office with concerns that their work will go unpaid and that there'll be disruptions in their programmings. My staff asked the Department of Energy for an update. We still haven't heard back.
▶ 1:38:43Um, so Secretary Wright, has anybody at the department been instructed to withhold information about the status of grants and contracts or to provide only vague general uh, we've received your No one has been told to withhold information. We're not withholding. We have no unpaid invoices or behind on that stuff. We are administering all the existing projects and we're carefully evaluating the projects that are committed which run into the thousands. Okay.
▶ 1:39:13Well, they still have not gotten any uh response uh on their um contracts and I haven't gotten responses to my inquiry. Can you We'll have to look into that. Can you give me a I would like a specific date when the department will notify the Clean Cities Coalition about their contract status. We've been waiting for two months. Um and I don't think it's acceptable for community partners or members of Congress to go two months without an answer to their questions.
▶ 1:39:38Um, in addition, the department recently cancelled dozens of grants issued by the Office of Clean Energy demonstrations for carbon capture and decarbonization uh processes and your fiscal year 26 budget eliminates this office uh entirely. Um, were the were the department's subject matter experts involved in reviewing and deciding to cancel grants? I'm sorry.
▶ 1:40:08I'm Can you repeat just the last part of the question? So, the grants issued by the Office of Clean Energy Demonstrations um that have been cancelled. Was the Department of Energy experts involved in that or was that Doge? Uh that's entirely the Department of Energy. We we have we have five Doge employees at the department. Very small part of the staff. Not not involved in any project evaluations. Okay. Thank you. Did you personally review any of the grant cancellations? Yes, I do. Okay.
▶ 1:40:36Can you confirm that each awardee was given a chance to address any of the concerns raised by the Department of Energy before their grant was cancelled? Uh most of the evaluations we're doing, we've sent out large data requests that come back. Some of them that were more that that were looked very unlikely to get over the hump. We're were notified of decisions, but they have an ability to engage back with us, an informal dialogue with us, and then there's a two st two additional appeal processes after that.
▶ 1:41:06So, if we've made mistakes or the projects really are beneficial, uh, that that'll be sorted out. Well, I hope I'm glad to hear that. And again, I I have found it very I've only been here, this is my third year in Congress, but I have been very um concerned by the lack of responsiveness that I've heard from the administration, particularly from the Department of Energy, as we try to get answers for constituents that have had either grants cut, who have had um notifications that they should have gotten months ago delayed.
▶ 1:41:35Um, and as part of my job is oversight, and I recognize I'm in the minority party, but I'm a member of Congress, too, who has oversight over at your agency. And I certainly would hope that when uh Democratic members of Congress ask questions to the agency and our legislative liaison that we get answers, and when we don't, every time I see you, I'm going to ask you those questions directly. So, thank you. Well, the gentle lady's time has expired and the chair now recognizes the gentle lady from Tennessee's first district.
▶ 1:42:05Five minutes for questions. Thank you, Mr. Chairman, and thank you, Secretary, for being here today. Um, you know, Tennessee is well known for providing nuclear services, and that's the line of questioning I'm going to go down today. Um, we know nuclear fuel is essential to the success of America's nuclear renaissance and our energy security.
▶ 1:42:25And this committee led on the Russian uranium ban uh legislation enacted last year and the legislation provides certainty to the market and is a prerequisite for new investment in the US nuclear fuel supply chain. My question is is the DOE committed to continuing to implement the ban legislation going forward including a rigorous process to uh grant waiverss to the ban. Uh yes we are.
▶ 1:42:51and and and you're I I think the motivation behind the ban I agree with 100% and we are working diligently to make America able to agree with to comply with that ban. But as as you know well uh today in the commercial power sector, there is no Americanowned enrichment based in the United States of America. It's a really a sad state we've fallen into. We are working hard both through grants and just with dialogues with providers in this country.
▶ 1:43:21We really want to build up as fast as we can commercial enrichment in the United States because of course we should not be dependent upon Russia to fuel our nuclear reactors. And I'm confident we will get there. I wish we were going to get there faster than we are, but we will get there. And uh and your actions in legislation and on that bill are obviously helping prod it even faster. And I thank you for that. We're going to talk about some ways to do that here in just a second.
▶ 1:43:48So, u given concerns regard regarding potential circumvention of the uranium ban via China, is the administration committed to implementing the anti-ircumvention provisions in the Yes. Yes, we are. Okay. Will you work with the committee to uh to ensure the bans implemented effectively? Yes, we will. Fantastic.
▶ 1:44:10Um, President Trump recently released four executive orders uh to accelerate nuclear fuel in this country and I'm in full support of those efforts and I appreciate the forward thinking and push to advance the high SA lowenriched uranium the Halo pro uh fuel supply chain by establishing US enrichment for the next generation of reactors and I encourage you to keep the pressure on. Uh however, we know it's going to take a few years to get the capacity up and running to meet the demand.
▶ 1:44:40And the executive orders direct DOE to look at adding 20 metric tons of Halo through down blending. And my district is home to BWXT's nuclear fuel services. And in addition to manufacturing all of the Navy's nuclear fuel, they also currently operate NNSA's down blending for the Tridium program. So we have unique capabilities um like NFS and the US that can help move these critical pro- US energy policies forward.
▶ 1:45:08Have you identified enough uh feed stock material to deliver the 20 metric tons through down blending? I should I believe the answer is yes but I am not sure of that. So I should I should be careful on that. But uh you can get back to me. Yeah. on that. Uh more broadly, how is DOE engaging industry to support these type of efforts?
▶ 1:45:32Uh we're meeting with all existing people that work in the nuclear fuel cycle, people that may enter to work into that space. Um, and you know, after the end of the Cold War and the decommissioning of nuclear weapons and the flood of fuel that put on the marketplace and Russia's strategic interest in flooding the market with enriched uranium has really devastated the supply chain in the United States for nuclear energy and we need to reverse it.
▶ 1:46:00We have Oakidge, we have Y12. Uh NFS has also been awarded a recent contract by the DOE's NNSA to develop centrifuge. It's a centrifuge pilot plant to ensure domestic supply of enriched uranium for defense purposes. there's a lot of energy around domestic enrichment for civilian nuclear power and I appreciate that.
▶ 1:46:24But however, there's a lot less conversation regarding domestic uranium enrichment for national security, specifically for NNSA's deterrence program and highlyenriched uranium for naval reactors. Can you share with the committee what the NNSA is doing to advance the so-called unobligated enrichment for national security? Um, it is an active dialogue. We do do enrichment as as you know for our own for our weapons programs and our national security reasons.
▶ 1:46:52And I should say as well, look, Tennessee is a nuclear powerhouse and and not only me personally, but the country. Thanks Tennessee for what you provide to the nuclear complex and I believe what we'll you will growingly provide to the uh to the country going forward. Um uh you know, Oakidge has a uh centrifuge technology and I understand that NNSA selected an industrial partner to help advance the lab's US derived technology with plans to build a pilot plant.
▶ 1:47:20Can you provide an update here for the record on where this program is and where it ranks in in NSA's uh priorities because China and Russia at the gentle lady's times expires. So if you want to submit that question for the record that be okay I can do that. I got a couple more. We'll we'll submit them. Thank you. Thank you. The gentle lady's time has expired. The chair now recognize gentle from Colorado's first district. Thank you so much Mr. Chairman. Welcome to my f fellow Colorado and um Mr.
▶ 1:47:48Secretary, one of the things that frustrates us on this side of the aisle is the expression of lofty goals regarding energy expansion and operational efficiency. You talked about it in your opening statement, and I want to expand on on my colleagues exploration of the issue of nuclear energy with you, which I know um is one of the administration's energy goals. Is that right? Yes. Yeah, absolutely.
▶ 1:48:14And and so just to let you know, last Congress, former chair Jeff Duncan and I worked with the committee and the Senate to enact into law a bipartisan bill. I'm sure you know about it, the Advance Act. It seeks to accelerate the deployment of nuclear energy technologies while ensuring the protection of public health and environment for future generations. I was really proud to be the co-sponsor of that. We had to do that bill because the NRC was already severely understaffed and overleveraged.
▶ 1:48:44In 2022, the NRC had shrunk by 23% in just six years and over a third of the agency personnel were eligible for retirement as recently as last year. So, this was even before the Trump administration came in. So, I want to talk about some of the cuts the administration is proposing in nuclear energy to the DOE because what we're worried about, the NRC is already struggling. The DOE is cutting money.
▶ 1:49:14I don't see how we can achieve these lofty goals. So, isn't it true the administration's budget would cut the Office of Nuclear Energies funding by more than 20%. I believe it's a little bit less than 20%, but it's actually about 24%. I may be an error, but I I'll I'll check that. But the budget the budget also cuts the advanced reactors demonstration program funding by half.
▶ 1:49:41Is that That that pro that that program that program is phasing down. So yes. So yes, since the beginning of the administration, DOE has lost over 20% of its staff due to terminating probationary employees and employees taking deferred resignations. Isn't that correct? Dominally from deferred resignations. Yes, it's about 20%. Correct. I don't have final numbers yet. Okay. I I'll guarantee you it is.
▶ 1:50:08And finally, DOE is currently under a hiring freeze right now. Is that correct? That is correct. Okay. Now, so, um, I want to talk about the administration's own stated goals for a minute. Uh, the the the president signed an executive order last month charging DOE with bringing three new reactors to criticality by July of 2026. That's just a little over a year. Is that correct? That is our goal.
▶ 1:50:38Absolutely. Okay. That was what the executive order said. Is that right? I don't have it in front of me, but but uh we have an aggressive goal to ramp things up. I will I will tell you that I never ask incorrect questions. I wish I was as flawless as you, but I'll I'm not flawless, but I check my facts.
▶ 1:50:58Looking at all reactors built since 1950, are you aware that the average build time of those reactors was 8.1 years and dramatically longer these days? But yes. Yes. Um, now are you aware that the average application review process can take up to five years and the commission phase typically takes one to two years? Yeah, I think you are correctly identifying some problems.
▶ 1:51:27You're here's some good news. I have a minute and 16 seconds left. So, I would like you to explain to this committee given all the cuts that I just outlined um and and given the personnel freezes how the administration thinks that it is going to approve and bring online three new reactors to criticality by July next year. So, number one, they're going to be demonstration reactors at the Idaho National Laboratory.
▶ 1:51:57These are commercial companies that have technology actually. So they're going to be demonstration, not actual energy producing reactors. That is correct. Okay, that's number one. Go ahead. And and and thank you for your leadership on the Advance Act, by the way, Representative. You're welcome. And we and the work on nuclear, it's not directly tied to the number of people. The NRC has grown hugely over decades and didn't deliver uh approved reactors. So there's there's difference between throughput and number of people.
▶ 1:52:26I don't disagree with that, sir, which is one reason I did the advance act. But if you're going to have a plan, even to put these three demonstration reactors up by next year, you have to have a a a a do you actually have a plan of how you're going to do that between now and then. And if so, I would like you to send it to me, seeing as my time is up. Yes. And we'll do. Thank you. I yield back. Thank you. Gentle's time has expired and the chair now recognizes the gentleman from Texas 11th district.
▶ 1:52:57Five minutes for Secretary, good to see you. I never ask incorrect questions either. Um and and last uh the last secretary I asked questions about how much energy we use and she had no clue. Uh so let's get big picture here. Um you have extreme expertise about how energy in this country works.
▶ 1:53:20I am worried about everybody who has testified here, especially those recently who have talked about data centers and the demand that we are going to see rising uh demand for electricity consumption and how we're going to keep up with manufacturing. Um just big picture priorities that you have set out that will enable us as a country to set the conditions for private industry to meet that demand with adequate supply. love to hear your thoughts.
▶ 1:53:51Yeah, look, as you know, over the years we've created huge regulatory burdens on building infrastructure, on building pipelines, on building power plants, on building transmission lines. If you make it harder and harder and more and more expensive to do things, well, guess what? You you get less of them. And that's what's happened in the United States.
▶ 1:54:10I heard a comment earlier that US oil and natural gas production were at all-time highs in 2023, which was true, but that's because it's dominantly on private land and state land, and it's not on federal land. We've had huge federal obstruction efforts. They haven't been entirely effective on oil and gas that's produced on private lands and on state lands. But when you restrict the ability to build pipelines and and grow the transportation, you ultimately restrict the growth of it. power plants.
▶ 1:54:38With the clean power plant, if you build a new power plant today, you have to have carbon capture and sequestration injected underground like 11 years from now. That's that's a technology we don't have at commercial scale. Massively expensive. Parasitic load of maybe a third of the power plant has to go to that thing. People aren't going to invest money and build power plants with constructions like that.
▶ 1:55:02It's it's there's a lot of reasons we haven't built as much new capacity as we should and for it's critical for this administration and this Congress that we work together to remove these obstacles and barriers that chill investment because we need to lead in AI. We need to win in AI. We can lead and we can win in AI.
▶ 1:55:23Um but to do that we need to get overly burdensome truly not focused on environment regulations out of the way so capital will flow and things will be built. We need some simplification with permitting. We need to make FK move more efficiently. But I will tell you in this administration and I know in this Congress there are many people working tirelessly to achieve just that. So I'm optimistic but yes big changes need to be made. Thank you for your work on deregulation.
▶ 1:55:51Thank you for uh the work to set the conditions so that it allows industry to innovate. It allows industry to provide affordable, reliable energy that actually works as opposed to what we saw the last four years. And on November 5th, American public spoke loud and clear. I want to talk about the Mexico Pacific LG export uh site and see if you have an update for us on uh that what would be a thousand BCF uh capable pipeline to deliver LNG uh to our partners and allies.
▶ 1:56:19And is there a status uh on uh this pipeline on the the permitting request? Uh Representative Fluger, say that again. Which pipeline? The the Mexico Pacific Sawarro uh Energia and it basically goes from the Peran Basin uh to the west coast of the Pacific with about a thousand BCF cap capability. I need to check into that because that would that will not be just DOE on that, but I am aware of the project and I need to check into that and get back to you on that.
▶ 1:56:49Um, thank you for that. And uh, so I know there's been some questions on the SPR. Um, you know, ju just how damaging was it to see 300 million barrels flow out and, you know, dur for political expediency? Um and uh I know there may have been some questions previously asked about this, but um you know what what can we do legislatively so that this never happens again?
▶ 1:57:15I don't have a good answer to that the latter question, but I think it's a dialogue we should have and as you said, what would the damage look there was damage to the facilities from drying out oil too fast. That's certainly upwards of hundred millions of dollars of repairs that are going on. Uh, it's a reduction in our security right now because we have meaningfully less oil stored in our strategic petroleum reserve. And I think it's a reduction in confidence in the seriousness of the United States.
▶ 1:57:41You know, strategic petroleum reserves are for strategic challenges that may arise in our future that we need to be prepared for and to show that we're willing for political purposes to flush away nearly half of our strategic reserve for for a short-term help in an election presumably I think hurts the credibility of the United States um in how we view energy and how we view our strategic security. Thank you for your uh leadership.
▶ 1:58:09My district represents almost 45% of the country's crude oil production and they want predictability. They want a horizon that they can provide that affordable, reliable energy on. Thank you for helping to uh to set those conditions. I yield back. The gentleman's time has expired and the chair now recognizes the gentle lady from California 7th district. Five minutes for questions. Thank you very much, Mr. Chairman, and thank you very much, Secretary Wright, for being here today.
▶ 1:58:37Now, strengthening American manufacturing our critical mineral supply chain are bipartisan priorities for this committee and it's a top priority for this administration. Is that correct? Yes. I I didn't hear everything you said, but but resoring manufacturing to this country is absolutely a top priority. I guess great. Now, the 45X advanced manufacturing tax credit is crucial for onsuring battery and critical mineral supply chains.
▶ 1:59:06Do you You have to think about it. Yeah. These are more complicated. Reshoring manufacturing will not dominantly be about tax credits or tax policy. It's more about regulatory environment is a much bigger factor, but it could be helpful in that. Yes. Okay.
▶ 1:59:24Now, the lithium mining company Ioner, which has received a nearly $1 billion loan from the Department of Energy, has said that repealing the advanced manufacturing credit would have a quote very direct impact. The chairman of Ford Motor Company has said, quote, "We have built the business case around that. If it goes away, it puts in peril the plant and the jobs." So why did the House Republicans just pass a bill to kill the advanced manufacturing credit?
▶ 1:59:53Battery and critical minerals industry groups have called the new restrictions and Republicans big ugly bill quote nearly impossible and effectively a repeal. Secretary Wright, this bill will require American companies to trace the supply chain of every screw, nut, and bolt to know information that they cannot obtain, including familiar relationships of tangentially related parties, affiliates of lenders, and more.
▶ 2:00:23Secretary Wright, you ran several companies. Do you seriously believe you can meet these requirements? I think if you want to resource the manufacturing sector of the United States, you you don't want companies that are just pass through entities for products from abroad. So, it's a trick. It's a sticky subject, but it's I don't think it's black and white. Well, could um Okay, let's talk about can Liberty Energy meet these requirements?
▶ 2:00:52Uh I I I believe do do you have documentation that you you have met these requirements or can meet these requirements? Well, I I at Liberty Energy, we certainly were not involved with government subsidies of any kind, but I I I don't have a specific answer to your question. Okay.
▶ 2:01:12Um, now I'll just say this is a repeal and it threatens hundreds of billions of dollars and tens of thousands of jobs in American If President truly believes about American manufacturing, I urge you to pick up the phone and stop the Senate from repealing this credit. Now, I want to turn to another priority I think we can agree on.
▶ 2:01:37Next generation geothermal energy has the potential to become a critical source of clean energy. Now, Secretary Wright, you've been very vocal supporter of geothermal. In fact, before joining DOE, you invested in Fervo, a leading geothermal company. Yes or no? Is that accurate? That's accurate. Okay.
▶ 2:02:01And President Trump even included geothermal in his executive orders to boost domestic energy resources. Is that correct? That's correct. Okay. So why are congressional Republicans trying to kill the clean energy incentives that the geothermal industry is banking on?
▶ 2:02:19The CEO of Furbo, Tim Latimer, whose company you've invested millions in, was recently quoted saying, "Will we bring gigawatts on the grid this decade or will it be the next decade?" That's what the tax credits mean. It doesn't get more straightforward than that. The Republicans big ugly bill kills the new energy tax credits and that will kill nextgen technologies.
▶ 2:02:46Now, I know you agree with me because it was reported just yesterday that you called for maintaining the clean energy tax credits for geothermal at the energy imperative summit. Is that correct? Yes or no? That is correct. I think I think geothermal should be included with nuclear as emerging reliable dispatchable energy sources for those credits. Yes. So, will you pick up the phone and push congressional Republicans to maintain the energy tax credits for geothermal?
▶ 2:03:17I have been doing just that. Okay. Thank you very much. And um I would just have to say that, you know, the majority of um new energy United States is renewable energy. And I think if uh we're serious about meeting the load growth from AI, then you need renewable energy. And I I realize we're running out of time. And uh I thank you very much. The gentle lady time has expired and yields back.
▶ 2:03:44And the chair now recognizes the gentle lady from Iowa's first district for five minutes for questions. Uh thank you chairman and ranking member caster for holding this important hearing on the fiscal year 2026 Department of Energy budget. Secretary Wright, I appreciate your leadership as we work to restore American energy dominance uh and ensure our nation's energy security. Unlike the last four years of the previous administration where we were in energy subtraction mode, we are now in energy addition mode.
▶ 2:04:12And the president's budget reflects the important priorities spurring critical investments in our national um security that I strongly support. We face unprecedented growth in electricity demand driven largely by AI, data centers, and advanced manufacturing. And we must ensure that the DOE's programs support a diverse and resilient energy portfolio that maintains reliability and affordability while fostering innovation. And Iowa is one of those states that is an energy uh addition.
▶ 2:04:41With the uh NERK projecting potential demand increases of up to 151 gawatts over the next decade, we need to ensure Department of Energy's programs are laser focused on innovation and commercialization. And I look forward to working with you on that. Um, Secretary Wright, you're requesting $750 million in new credit subsidy while cutting administrative expenses in half. The program currently has 122 applications totaling 216.7 billion in requested funding.
▶ 2:05:10Can you explain how you'll be able to uh process these through the pipeline um and how you're going to address that issue with a decrease in Yeah. Yeah. Thank you for the question, Representative And in the department, of course, there's always massively more requests than we can achieve. You know, if you if you offer lowcost money, there's a lot of uh there's a lot of uh customers for that.
▶ 2:05:36So, I think key for us is to focus in on which are the projects can bring the break greatest benefit to the American energy system and the American taxpayers. And um and again, the loan program office with the current budget request is is shrinking.
▶ 2:05:55Personally, I' I'd love to see it uh a little bit bigger than than in the current plans right now, but boy, I certainly understand the Congresses and the American taxpayers extreme frustration with the loan program office that is was used wildly uh irresponsibly in the last four years and particularly in the 76 days after the election and before inauguration.
▶ 2:06:18If I saw more than twice as much money lent out or committed in 76 days than the previous 15 years, I'd be pretty suspicious of that program as well. So, you know, I look, it it dug a big hole. And my goal is to is to keep it alive and try to have some scale in it.
▶ 2:06:39So, next generation nuclear, uh, some critical mineral stuff, potentially even geothermal, if there are there are businesses that can be and will be long-term commercial businesses, but need a little help to get industry started again, and it's creditw worthy borrowers, and there's meaningful equity money behind it.
▶ 2:07:03I think there's some good uses for the loan program office, but careful in judicial and nothing like we saw in the last four years. And you uh answered my follow-up question. So, and I have quite a number of questions I want to try to get to. Uh the bio energy technologies program is reduced from 275 million to 70 million. Given the importance of sustainable aviation fuel to both our energy independence and aviation sector, what's your strategy for advancing SAP development and deployment?
▶ 2:07:31And how will you ensure we don't fall behind other nations in this critical technology? Yeah, I think that the key area there is is the last word you just said there representative technology. We need to keep drive, you know. So what what we want to support in the department is technology advancement. Bofuels in general are challenging just because the energy density that arise from the sun is not that high. It takes a lot of land uh to produce meaningful amounts of energy.
▶ 2:07:58But the more we can get that technology better and better we can increase the energy density and uh and grow the grow the future runway for bofuels. So we want to focus on driving technology forward and less on sort of corporate subsidies to existing technologies. And then I'm going to ask this question and then submit another one for the record on RPE. But uh and you you can address this question in writing to us.
▶ 2:08:23But as we work to meet the uh rising electricity demand and modernize the grid, one cost-effective solution is reconductoring existing transmission and distribution lines with advanced conductors at increase capacity without requiring new rights away.
▶ 2:08:37I know I'm running out of time, but if you could address for us in writing um how the department is willing to consider or incentivize reconducturing efforts particularly in ways that enhance system performance and efficiency while keeping electricity reliable and affordable cons for consumers, I would appreciate that especially as myo is my grid and had the previous administration been listening to grid operators as suggested by the ranking member um we would have been increasing energy production and generation the past four years instead of subtracting.
▶ 2:09:07and reconductoring is a great solution. So, I'm with you. The general lady's time has expired and the chair now recognizes the gentleman from New York's 20th district for five minutes for questions. Thank you, Mr. Chair, and welcome and thank you, Secretary Wright. Uh, Secretary Wright, like many members, before coming to Congress, I served in state government, including time at New York's state energy office. So, I'd like to try to understand the role you envision DOE playing to support its state partners uh with what I hope are yes or no questions.
▶ 2:09:37Do you believe states have a responsibility in supporting energy emergency planning? Uh yes, I do. And what about cyber We we cooperate with all authorities we can in cyber security whether it's utilities, businesses. Yeah. Including states. And what about providing technical analyses for public utility commission proceedings? Yeah, clear clearly states play central roles in utility evaluations. Thank you. And what about addressing energy affordability challenges?
▶ 2:10:09Uh I I think that's a a legitimate area for states to work in. Absolutely. Sure. So, these are just a few examples of activities that both red and blue states are already working on, and they rely on state energy program funding uh to support their work. The president's budget request zeros out the office of state and community energy programs, which includes the state energy program and uh proposes rescending some $47 million in SEP funds from the bipartisan infrastructure law.
▶ 2:10:39How does the administration reconcile the need for states to do this important energy work while also eliminating funds that enable it? Well, obviously there's multiple ways to fund state energy offices and and the most logical way is is by the state government. Um, so whether there's a federal government role in funding state energy offices, I think it's pretty legitimate to say it shouldn't be funded by the federal government, it should be funded by the states. I met with a governor yesterday, a Democratic governor. So, we cooperate with states.
▶ 2:11:08uh no matter what funding of state energy offices, it's probably better left to states. Well, you know, there's talk already about adding on the cost of Medicaid to states, providing asking them to have skin in the game for nutrition assistance programs, having them enable EPA activities. The list goes on and on. And so, this is piling up a lot on the states, and I don't know if it's realistic.
▶ 2:11:31But putting aside 2026 funding, I've heard concerns about DOE staff reductions, particularly the Golden Field Office having lost one half of its workforce that are essentially stopping state energy program grant review processes. Many states are currently waiting for approval for their next allocation of previously appropriated funds.
▶ 2:11:49Can you give us some insights um sir into what's going on in SKEP and whether you are committed to getting previously appropriated funds allocated to states in a timely manner so that they can continue the type of work that we've previously discussed here? Well, I think the main funding out of SKEP is done on an annual basis and those are usually I think delivered in July and we are working towards that goal and and uh I I think we'll we'll make that goal or be very close to it.
▶ 2:12:19So, I don't I don't think you'll see a huge disruption there. I hope so. And I know many members in President Trump have expressed concerns about rising energy costs. DOE has a critical role in promoting energy affordability, especially through energy efficiency, which is often the most cost-effective option to lower utility bills. In May, DOE claimed to be saving Americans 11 billion through the elimination or reduction of some 47 rules, including numerous energy efficiency standards.
▶ 2:12:48But according to DOE's own analysis, just 12 efficiency standards would save more than 54 billion, which is nearly five times as much in utility bill costs. Therefore, people would see their net costs increased by some $43 billion. In addition to this being another major blow to energy affordability, this action would be illegal. Secretary Wright, the law forbids weakening energy efficiency standards once they are finalized.
▶ 2:13:15Are you aware of that I'm sorry, Representative. Repeat the last sentence. Yeah. The law forbids weakening energy efficiency standards once they are finalized. Well, I I I can assure you we are following the law and very carefully reviewing these things. But we think that consumers should choose the tradeoffs they want to make and not the government, making people buy more expensive, less effective appliances.
▶ 2:13:42But back to those energy efficiency standards, I'm citing section 342 of the Energy Policy and Conservation Act. And in 2004, a federal appeals court ruled that DOE could not weaken efficiency standards once they are finalized. Secretary, are you aware of that ruling?
▶ 2:14:00I can assure you that the legal team at the Department of Energy that's heading up these efforts is aware of these laws and and being very careful to comply with the laws while at the same time restoring choice and freedom to American people. Right. This attack on energy efficiency standards is not only harmful to Americans, I believe it's illegal. So, Mr. Secretary, I hope you reconsider this action. I request, Mr.
▶ 2:14:22Chair unanimous consent to add to the record this policy analysis document from the appliance standards awareness project on the effects of the proposed roll backs of efficiency standards on consumer energy costs without objection so ordered. I appreciate that and with that I thank you and yield back and the gentleman's time has expired and the chair now recognizes the gentleman from Michigan's 10th district for five minutes for questions. Thank you Mr. Chairman.
▶ 2:14:46Thank you, Secretary Wright, for being here and for the hard work that you and the Trump administration are doing to advance an America first energy agenda. Republicans are advancing an all the above approach to ensure that we remain global energy leaders and I like what you said, all sources that actually work in reality. Uh, Mr. Secretary, I'm uh extremely encouraged by your agenda. I look forward to working with you and your team to ensure that we're prepared to meet the moment and continue to excel in global energy production. So, I'm just going to jump right to the questions because uh your time is very precious.
▶ 2:15:17Uh in 2024, uh Nerk's long-term reliability assessments uh they stated that the greatest threat to our power grid is out our our shift to inter intermittent resources and premature retirements of thermal generation.
▶ 2:15:33NERK's 2024 long-term reliability assessment also projected that the mid-continent independent system operator, MYSO, which covers uh my district uh and and in Michigan, uh will experience a 4.7 gawatt shortfall by 2028 if current expected generator retirements occur.
▶ 2:15:53In your discussions with MYSO, have they discussed how any current state net zero policies have contributed to current cost increases to consumers and expected power shortfalls in the future?
▶ 2:16:10Um, absolutely, Representative, thank you for the question and uh and look, many people at DOE have been in dialogues with NERK and with MYSO about these issues, but I but I think you hit you hit the nail on the head like what what do we want? We want to reshore manufacturing to Michigan. We want to bring data centers to Michigan. We need to grow the supply of affordable, reliable electricity in Michigan. and closing plants.
▶ 2:16:35The coal plant for example with 15 years less in its average lifetime closed for political reasons closed to show you know virtue signaling we're going to move away from coal. uh that's not in the best interest of of Michigan rateayers and Michigan citizens.
▶ 2:16:53And um but yes, utilities get bullied and influenced by state politicians and national politicians that have political agendas around energy that are often not aligned with rateayers and citizens in those districts. So premature closures uh in the pastures have greatly increased um the likelihood that rateayers will play higher. Um, thank you for that. Yes.
▶ 2:17:18Um, I've heard back you were mentioning uh the JH Campbell coal plant in Southwest Michigan. Uh, can you please walk me through the administration's reasoning um for this order, the uh the emergency order? Could you articulate the uh the reasoning for that? Yes.
▶ 2:17:34And and again along the lines you just discussed, MYSO where in in that the system operator in which this plant exists in the Midwest is the lowest reserve margin we have meaning the greatest risk of blackout and of course it's the industrial heartland of the United States and there was one recently there was a blackout 2 days after we issued that order to keep that coal plant open.
▶ 2:17:57So when opponents were saying the White House claims claims that the intermittent nature of solar and wind generation will lead to energy shortages and failed to meet the surging electricity demand 2 days after they said this there was an actual shortage. Correct. So it sounds like you reacted quickly and you reacted at least on time um to make it not make it worse. Last question.
▶ 2:18:22Um I am um I'm very concerned that even though we are trying to keep as much power online as possible that this is going to directly result in increased rates for people in the state of Michigan. Um I'm sure you're aware that Consumers Energy filed a complaint with FK against MYSO seeking compensation for keeping open the JH Campbell coal plant this summer.
▶ 2:18:44Um, I look forward to working with you and your team to make sure the reliability in our region is strengthened while not being financially punitive to our energy customers in Michigan as myO is a is a large organization.
▶ 2:18:59um where this power is dispatched is going to benefit a larger organization and so therefore those costs should necessarily be spread out as we all have to make sure that we are cooperating to make sure that we keep our power high and keeping our costs low. Uh is there anything that I have missed uh that would uh more accurately reflect the uh the administration and your actions specifically related to that coal plant? I think you're very well spoken. Right on.
▶ 2:19:26And and I share your interest for a reliable, affordable grid. That's what our citizens and our rateayers want and that's what we need to work towards. I would also encourage you or thank you for your efforts on the big beautiful bill. The reforms in there in energy policy will not only save Americans money by stopping the 30-year long subsidies for intermittent energy sources.
▶ 2:19:51Not only will the federal government si save money, but by putting stopping the rapid increase in intermittent sources on grids, we will reduce stress on grids and reduce costs. And so, thank you for your leadership in this area. I appreciate your support. Hopefully, we can make consumers. Thanks. Byebye. And you? I yield. Thank you very much. At the chair now recognizes gentle I'm sorry the gentleman from Texas 33rd district for five minutes for questions. Mr.
▶ 2:20:21Chairman, thank you very much. Uh, Secretary Wright, thank you for being here today. Congratulations on your appointment. I know that uh uh we've had some you good news in the oil patch and some interesting news in the oil patch. Um, and I wanted to just ask you a few questions particularly around everything that's happening nationally.
▶ 2:20:42uh your uh FY26 budget proposal uh guts proven proven bipartisan energy programs, some of which directly support our domestic workforce and ensures uh American energy dominance. Um uh and here's what's not in your budget that I wanted to talk with you about. A plan to deal with the consequences of mass deportations in the Perian basin. Uh as you know the Perian accounts for nearly 50% of the oil production.
▶ 2:21:12That's around 6 million barrels a day. Uh and that production doesn't uh rely just on rigs and engineers. It depends on a workforce and many of those dangerous jobs in the oil patch. As you as you know because you've been in the oil patch, you know that many of those dangerous jobs are performed by people in this country that are undocumented. Um, and so if ice were to hit Midland or if they were to hit Odessa, I don't think there's any plan in your budget to replace those workers or that lost production.
▶ 2:21:43Uh, in Odessa, studies show that undocumented workers make up about 13% of the workforce. Uh, that's one of the key hubs for Perian uh, operations. And I've seen other anecdotes where oil field service companies in Midland uh have uh only about five or five or 10% of their employees with genuine papers. Uh and so as you know, those aren't soft skill jobs. Those are people that are out in the heat.
▶ 2:22:09Uh people that uh risk injuries to their hands and to their, you know, their their uh their limbs. Um and they're having that hot Texas heat. I'm sure you've been out there in the summer as some as someone from Fort Worth. I've been out there uh in the summer and I can and and I think we all know that it's hot. Uh where in your budget and this is a question that I have for you. Where in your budget do you account for the impact of potential mass deportations on oil production in the Peran Basin?
▶ 2:22:38Because if Steven Miller wants 3,000 people a day deported, which has been deported uh reported that he does, um what are you going to do to replace those workers? A great question, Representative. Yes, as you're correct. I've worked for years out there employing thousands of people in that region and and a large number of them are relatively recent immigrants from Mexico and from further south of the border.
▶ 2:23:04Um, tremendous hardworking, awesome workers, but certainly in my company, all of them are are here illegally. They are not illegal immigrants. I'm sure there are some, but I I would suspect the percent that are illegal is is quite small. You gave a number of 13% that that may be one small community. Did you use third party? Did you use third party companies for uh to hire employees?
▶ 2:23:28Were they weren't hired directly by you, but they were brought in by a third party that had their papers and had their social security numbers already ready or did you hire all of those people? We hired all of those people. We have it implemented. You use the Everify system to Okay. Correct. Uh uh so let me ask you a question.
▶ 2:23:47If ICE were to show up to Midland today and do a largecale uh and uh it were to get a little bit rowdy, would you support the president calling in the National Guard to Midland, Texas or West Texas uh like he has in Los Angeles?
▶ 2:24:09Look, in due respect to all the great immigrant workers that are that work in that region and work across our country, you need to respect the difference between those that came here illegally and those that are here illegally. What about the people that are going to have their TPS status revoked? Uh, a lot a lot of them probably work in the oil patch. I mean, you you you hear the stories and you can go down to the oil patch and see if for anybody that hadn't been down to Texas on the Democratic side or the Republican side, they can go down to the oil patch and see for themselves.
▶ 2:24:38What about the people uh the TPS people that are going to have their status revoked? That that could be very disruptive to the oil patch. Yeah. Workforce in America is critical and a lot of the workforce in the United States are immigrants from overseas and they are awesome contributors to our society. I think that the line is just between who's here illegally and who's here illegally. Let me ask you another question.
▶ 2:25:01Is it easier to drill baby drill with no employees or is it easier to drill baby drill having to go around let's say EPA regulations? Wait, the first having to is it easier if if is it easier to drill for oil with no employees or is it easier to drill for oil having to work around a few EPA regulations? I would think it'd be harder to drill for oil without any employees.
▶ 2:25:31You definitely need employees to drill for oil. Absolutely. Yeah. Okay. Thank you. Thank you, Mr. Chairman. I yel back. Thank Thank you very much. The gentleman's time has expired and the chair now recognizes the gentleman from Texas 12th district for five minutes for questions. Oh, I'm sorry. I didn't see the gentleman from Colorado or Oregon in front of me, but the gentleman from Oregon is recognized for five minutes. I'm sorry. Thank you, Mr. Chair. Uh Mr. Secretary, thank you for being here.
▶ 2:25:57So I I am from Oregon and the Columbia River runs across the north north side of it and of course we have all these dams that generate they I think the name plate is around 36,000 megawatts and and the continuous about 16,000 megawatt. So it's hugely obviously hugely important.
▶ 2:26:14Um it it happens that the Biden administration entered into a non-binding with tribal and probach of certain of those dams um for using rate payer dollars to ostensibly create solar and other uh intermittent sources to offset the the reduction in generating capacity that would occur when the four lower Snake River dams were breached. Um, I obviously oppose that.
▶ 2:26:44I held a hearing up in up in Washington state as chair of the water subcommittee on natural resources. We had 400 people show up that were adamantly opposed to dam breaching and we went through all of the obvious justifications for keeping those dams. Uh I believe theou is still in place and I'm hoping that the department will put an end to it and say look we're not going to spend money in replacing ostensibly the power generated by these dams with solar or otherwise.
▶ 2:27:12Can you have you been brought current on this situation? A absolutely representative we are working that issue and have been working that issue for several weeks now. I agree with you entirely that those are great projects that were built decades ago in our country and generations have benefited from that hydro power which you can ramp it up when we need more power and you can ramp it down when we don't need it.
▶ 2:27:35That's highly valuable power and you can never replace something like that with wind or solar because you don't know when they're going to be there and when they're not there. They are totally different things. We don't have a bag to store electricity in.
▶ 2:27:50The critical criterion of an electricity grid is that it meet demand at peak time and that and that function as a gigantic storage device that that in those sets of dams up and down the Columbia River and the Snake Rivers is hugely important to intermittent power, is it not? It's hugely important to our grid.
▶ 2:28:11I absolutely they they can reduce the damage of intermittent power sources but but uh but even without intermittent power sources you need to be able to have higher electricity at times of peak demand and less electricity at times where demand is low and hydro power allows you to do that. They're tremendous resources there. There's no doubt that that we're engaged in an existential battle when it comes to artificial intelligence and there have been a number of server farms owned by many moving into the Northwest.
▶ 2:28:39I think they're going to be a huge part of us ultimately winning that race. But there seems to be a disconnect when it comes to the the absolute need for additional uh electrical generation. Uh I see that we have basically a flat uh production uh curve flat and China has one that's shooting straight up. What is what is your plan? What is the department's plan to to do to catch up if you will?
▶ 2:29:08We need to pivot the direction we've been on in this country. You know, again, during the last four years, we spent tens of billions of dollars to do two things. To subsidize the installation of intermittent sources. Um, peak demand in PJM, where we are right now, inauguration night at 4:00 a.m., uh, wind was 2% of electricity, solar was zero. Together, between the two of them, 2% of peak demand. That's when it matters.
▶ 2:29:37If you're not there at peak demand, you're just a parasite on the grid because you just make the other sources turn up and down as you come and go. So, we are we are trying to reduce the barriers to investment in reliable dispatchable sources such as hydro power and we are doing everything I can together with this Congress through the big beautiful bill to reduce the subsidies that put intermittent unreliable sources on our grid. We pay people to put stuff on our grid that ultimately makes our grid more expensive.
▶ 2:30:06If you subsidize something, it better be cheaper. We're subsidized something and getting a more expensive product at the end. That's a big loss. And could you also certainly is. Can you also address the fact that with intermittent power, you have to have a backup. Thus, you double the cost, triple the cost because you can't just rely upon wind when the wind doesn't blow. So, you've got to have that backup. So, that's that's driving up the cost of that particular source of power, is it not? Well, correct. And we're raising we're inadvertently making all these other energy sources have to back them up.
▶ 2:30:36If you build a natural gas power plant, for example, and then the sun shines and you got to turn it down and then the sun goes behind a cloud and you got to turn it up, that's a much less efficient way to run a power plant. Our electricity markets have rewarded low value electricity and we've subsidized to put more of it on. Germany and Denmark and England have shown where this leads. De-industrialization. It really does. Thank you so much. Yield back. Thank you very much. Gentleman's time is expired and yields back. The chair now recognizes gentle lady from Washington's 8th district.
▶ 2:31:05Five minutes for questions. Thank you, Mr. Chairman. Uh before I even start, as I listen to the bashing of uh intermittent sources of energy, it occurs to me that we could resolve all of those issues if we got sensible permitting reform done and there is a bipartisan bill that I would love to see us work on together to do just that. Uh thank you for being here today, Secretary Wright. Uh like many of my colleagues, I'm very concerned about the staffing cuts that have taken place under your leadership.
▶ 2:31:34It seems to me that the roll out of these cuts, especially in Washington state, has not been strategic or tactical. They've been indiscriminate and arbitrary and are often followed by an oops. And uh you know better than anyone that uh Department of Energy employees are some of the most educated, nimble, strategic federal workers uh and really have irreplaceable expertise.
▶ 2:31:58So it doesn't look good and it doesn't bode well for your reputation to kneecap such an important agency at a time when energy needs are skyrocketing and we're facing a climate crisis and need to decrease emissions. Um, so I'd like to highlight the issues at the Bonavville Power Administration. I only have five minutes. You know what Bonavville does? It's a balancing uh authority that keeps the lights on in the Northwest, keeps electricity flowing.
▶ 2:32:25Um, we've got engineers and operators who manage the grid 247 and the linemen who go out in the worst weather and repair that grid. Um, and every single person there is necessary. They also do this at zero cost to taxpayers. this is all rateayer funded and so to take a doge to that and fire people makes no sense for any um any explanation you might give.
▶ 2:32:50So I my first question is I just want to know were you aware that Bonavville was already encountering a workforce shortage before this year's staffing Uh yes I was aware of that. So, if you were aware of that and you were aware of the fact that it would not save taxpayer dollars, like why why did you do this?
▶ 2:33:15Why did you offer early retirements uh and then do it again and fire probationary employees um only to then realize but you already knew that we needed those employees? Like what was your thinking there? Uh first of all for clarification that the headcount at at Bonnyville Power Administration which is a fantastic agency I met with them last week and we're discussing exactly how to address their long-term problem of people.
▶ 2:33:43They were well understaffed at the start of this administration. Their headcount is not meaningfully different today from what what it was when I arrived. And in fact, what I'm working with them right now is how we can grow the number of linemen at Bonnieville Power to assure uh safe safe delivery of reliable power there.
▶ 2:34:03Um so I also talk uh with administrator Haristston on a regular basis and of course one of the things they were talking about was raising salaries to compete with the private market and the other is of course um you know I think you were just lucky that you can do this. Oops. people take the retirement and then they actually choose to come back. We could have been in a much different situation and private uh energy companies were pursuing these very skilled workers.
▶ 2:34:31Um, I I I just want to know kind of a commitment from you that you will freeze uh that you will lift the hiring freeze, make sure we hire more and work uh with administrator Haristen to make sure that uh Bonavville is fully staffed. Um I absolutely are working with the administration right there. I do think we need to hire some linemen at at Bonyville Power Administration and I will work to get that done. Um, just to be clear, we need linemen.
▶ 2:35:01We also need the next, excuse me, the next generation of engineers who will balance this. And so I I really need a commitment that it it will be linemen and others who will build and hold the expertise that we really depend on to keep the lights on. at Bonnieville. We absolutely we will work with Bonnieville on that to to navigate through these times and keep that agency uh staffed and and delivering high quality service. It's important. Thank you.
▶ 2:35:31I only have 37 seconds left, so I'm going to mostly make a point here. Um you were just talking with Congressman Bence about hydropower and the benefits of being able to turn it up or down to meet demand. It turns out that even better than turning on and off turbines um is to actually use excess energy to make hydrogen because that is one of our energy sources in the future and we need all of the above as energy needs are skyrocketing.
▶ 2:35:56And so I I would just like to emphasize uh that the uncertainty about grants and tax credits for hydrogen hubs around the country and particularly my passion would be green hydrogen um is really imperiling the ability to put more energy sources on the grid and is putting a thumb on the scale for oil and gas and I would object as one of the hydrogen hubs to that. Thank you and I'll yield back.
▶ 2:36:23The general lady's time has expired and the chair now recognizes the gentleman from Texas's 12th district for five minutes for questions. Thank you, Mr. Chairman, very much, Mr. Secretary. Thank you very much for being here today. Very interesting hearing. Um I um agree with Mr. VC uh that the men and women out in West Texas are a very important part not only to the people of Texas, people of the United States, but people around the world in supplying energy.
▶ 2:36:51Um and um I want to stay in West Texas but not go that far west Texas and talk about um Abene. Uh Abene Christian University has one of the two permits from the NRC to build the next generation reactor. The DOE committed in 2019 to provide the fuel and salt for the project as it does for every existing university research reactor. Will the DOE support this advanced nuclear project by honoring that commitment?
▶ 2:37:18Yeah, that is our intention and I the department is working with Abene right now to figure out the you know it's a different type of fuel in a molten salt reactor design how to accommodate that request but I'm I'm quite proud and impressed by the work going on at the university and we certainly want to support it. Can you give us some sort of in your mind a timeline uh from when we see where they are now to where they'll be in 5 to 10 years perhaps?
▶ 2:37:44a timeline and where of where that reactor will be. Will it be online? Will it be working? Will it be I mean, are they testing from now till a decade from now? Where in a perfect world, where would you like to see them in 5 years or 10 years? Oh, in a in a perfect world and and in a reasonable regulatory regime, which is a huge part of our agenda. Absolutely. That should be that should be selling electricity five years from now. And I sure and I sure hope it is. Me too. Uh Mr.
▶ 2:38:13BC did to talk about the workforce. So one of the potential roadblocks to building a nuclear energy is the workforce. How will the DOE budget requests increase support for universities and techn technical and community colleges to train the next generation nuclear scientists and skilled workers to be able to support the goal of the nuclear um buildout. Yeah, that that is a key thing. You know, we've had, as I say, nuclear hasn't been sexy for a few generations because we haven't done much with it.
▶ 2:38:42And we it's when I speak and go around, I I want to get young people excited again in wanting to go into this industry. But the only thing that'll happen is if if act if things are happening, if we're building reactors and they're selling power and businesses are growing, that's going to draw people into the industry. and for us for a research funding and and our efforts in the commercial space.
▶ 2:39:03If we can focus our dollars on things that make uh American energy system better and that consumers want to buy, those are the businesses that'll grow, that are not going to be blowing with the wind of government subsidies. We need sustainable industries that can grow because customers want to buy their products. That's what'll bring people into that industry. And I and that's what we need to have happen with nuclear. We need once we can build some reactors and get some efficiencies and drive cost down, I think this industry can really take off.
▶ 2:39:31Um, and one of my colleagues across the aisle earlier was bragging about uh the Texas grid and that the the wind and the solar especially. Uh, but those are subsidized. Correct. They are. And so, and our other entities on the grid, nuclear, uh, natural gas, coal are not subsidized. Is that correct? That is correct. Okay. So, in fact, they're penalized, right? Thank you. By being forced to turn on and off all the time, right?
▶ 2:39:58So, um, so to that point, we obviously need more power in Texas. There's no doubt about that. What's what's your thought of how Texas goes about to create more power um, the power needs in the future for us? Well, one of the one of the houses in Texas, I'm not sure if it was the House or the Senate passed a bill.
▶ 2:40:18I do not believe it's pass but let's pass them both but yeah pass them both and and I think that that's a very electricity is complicated and again as I was discussing before because you got to balance supply and demand at all times but I think that Texas proposal that if you're going to bid into the electricity market and be treated like everybody else you got to be able to provide 247 power I always say to people would you pay the same amount of money for an Uber that you didn't know when it was going to pick you up or where it was going to drop you off.
▶ 2:40:48That's just not the same product. We need to have people bidding into a marketplace that are both delivering the same product, which is 24/7 electricity because that's the only thing customers will buy. Perfect. Thank you very much. Thanks for your time, Mr. Chairman. I yield the rest of my time. Thank you. Well, thank you very much. The gentleman yields back and the chair now recognizes the gentle lady from Texas's seventh district for five minutes for questions. Thank you, Chairman Lada. A lot of Texans in here today. Uh, obviously this is very important to our uh to our state and our constituents.
▶ 2:41:19And so I thank you, Secretary Wright. Um, I think this has been an important and useful hearing for all of us. And I've made a lot of notes and a lot of questions on a lot of things this morning. I hope we can get to all of them. I kind of think we can't. Um, but let me start as I planned, which is um letting you know, Mr. secretary that I represent Houston, the energy capital of the world, uh, which is home to 11% of United States energy jobs and there are more than energy related firms. Um, and where I understand you have many friends, Mr.
▶ 2:41:48Secretary, energy capital of the world. I agree with you 100%. It it sure is. My colleagues here are tired of hearing me say it, but it's important. And the issues that we're talking about today are really important to my constituents. And the number one thing I'm hearing from them as well as from people in the business across the country um is the need to know the rules and regulations and the requirements to be able to trust that long-term projects can move forward and that they can get the approvals they need.
▶ 2:42:19And certainly I agree with my colleagues who have said we have got to tackle permitting reform in this committee in this Congress and have good bipartisan durable permitting reform. That's a huge issue. They need permitting certainty. They need investment certainty. They need to be able to plan, as you well know from your experience. And before making these multi-billion dollar investments that Americans across the country are going to rely on, they need to be able to rely on the process itself.
▶ 2:42:47And so, I agree that the process can and should be and must be improved. But what we're seeing right now is really a destruction of the process across the board. a destruction of the legislative process, a destruction of the administrative process, and it's causing chaos that's going to continue for years to come. And so, in in response to a question from Mr.
▶ 2:43:08La earlier this morning, you said the administration is focused on um bringing in private capital and that that's an important part of your work, but this environment is not conducive to investment for private capital. Um, and we're seeing the recision of of government capital that's been greenlighted in the past to move some of these projects forward. And and they're not crazy ideas and they're not firms you've never heard of.
▶ 2:43:33The the announcements that my colleagues have already talked about the from the demonstration programs have been cut in my area. They're they're grants to Exon Mobile and other household names that are doing this important research. And so, um, I think that this environment isn't conducive to that investment is the overwhelming and resounding message that's coming from my district. So, I really want to share that with you because I think working outside the legislative process isn't going to help solve some of the problems that are most on their minds.
▶ 2:44:01And so, I think it's really important. Um, and one of one of the first notes I made when you were talking earlier this morning is that America doesn't back down from big challenges, right? I wrote that down, too. To tackle big challenges, we need big ideas. And that's where DOE comes in. That's where we are able to do the research at the labs and to do things to really scale some of these ideas. And we've seen it. I know a couple years ago we spent a lot of time talking about uh carbon capture.
▶ 2:44:30Certainly we know that that's been um something that industry's used for decades and decades doing EO and other things and and that has great promising ability to help us address the emissions challenges that we have and yet you know we need to we need to use the the resources that we have at DOE to try to address some of these um some of these challenges and so I hope that we won't see your budget cut some of the important and innovative research.
▶ 2:45:01And I do have a specific question on on research coming from the budget that I want to ask you, but it ties into something else you said earlier today. You mentioned the impact of Wintertorm Yuri in Texas in 2021. And um we really can't understate what a tragedy that was. I lived through it in my home in Houston, but not that far away from where I live, a little boy froze to death in his bed when the heat went off. That's what we're talking about when we talk about the importance of these issues.
▶ 2:45:31And from your from your testimony, it seems to me like you might not know that FK found that 87% of the unplanned generation outages were because of fuel issues related to natural gas, not renewables. So, I just want to make sure you know that. I'm happy to share that with your team. Um, and I don't want to confuse you. I'm the co-chair of the natural gas caucus here. I fully believe in in the importance of that. Um, but these issues are life and death issues for our con constituents.
▶ 2:45:56And so I want to note that your budget for fiscal year 2026 includes a 50% cut to the national natural gas infrastructure and hydrogen technologies program within the office of fossil energy. And I want to know if that includes weatherization research and development. And because I've spent the whole five minutes talking, I'm going to have to ask you to to reply for the record with the answer of what those cuts are. But this weatherization technology at across the spectrum is just critically important.
▶ 2:46:25I hope you can answer that for me. Thank you so much, Chairman La. I yield back. Chair now recognizes the gentle lady from North Dakota for 5 minutes for Well, good afternoon now. I think officially uh Secretary Wright, so great great to see you here. Um I still remember meeting with you in Bismar, North Dakota a couple years ago and your very inspiring uh comments there.
▶ 2:46:50So great to have you out here in this role and I really very much appreciate your work to both um provide the right signals to the markets to make sure that we're incentivizing things correctly and to make sure that we're really trying to uh let the energy industry develop on its own uh without putting our fingers too heavily on on the levers ourselves. So thank you and I want to support you in those efforts.
▶ 2:47:20Um I want to talk a little bit about the reliability issues given that NERK's assessment today is that twothirds of our uh our systems in the US don't have enough power to meet demand given certain circumstances today. And we're looking at retiring 115 gawatts of base load generation. and we're seeing uh significant demand increases.
▶ 2:47:47All of that looks like a huge train wreck to me and to many others. Um so today I introduce a bill. It's called the base load reliability act and it will um give DOE fk uh tools and and the grid operators tools to help uh slow down the retirements at least in time uh for a new uh base load or dispatchable resources to be brought on that is kind of equal in nature and how it re um responds
▶ 2:48:17to the grid. So I want want to invite your um look at that and your support in that. And one of the things that we need to do and be doing is actively tracking where those planned retirements are and um how they might impact the grid. And I just wanted to ask is that something that your office is already doing and working on? I it is uh representative and thank you for not not just your comments and question here but for your leadership.
▶ 2:48:44You've been an outspoken person and what I used to call or call energy sobriety. Just being thoughtful. Look there there's no clean energy sources. There's no dirty energy sources. They just all have different trade-offs, right? But you you but we we produce energy for one reason, which is to better people's lives. So having a reliable grid that's as affordable as possible and that can grow so we can bring industry and and more job opportunities to our states and communities is just critical for doing that.
▶ 2:49:14And so yes, it it is a thing we're doing right now because we now are seeing significant demand growth signals. People want to build data centers. I've met with every one of the hyperscalers and a whole bunch of people that want to bring industrial factories and plants back to the United States. I think it's awesome. It's awesome for our country. It's awesome for bluecollar workers. Um it's something I really want to see happen. But that is their biggest worry.
▶ 2:49:40Hey, if we come here, how am I going to navigate through FK or whatever to be able to build a power plant? How am I going to know I have reliable affordable power? I'm going to it's going to take me, you know, 10 billion dollars to build my plant. It's going to run for 40 years. I want to know what the how I can get confidence in the in the energy thoughtfulness of the United States and that price.
▶ 2:50:02And so when people want, you know, tens of gigawatts of more power and we're shutting down facilities with decades left on their that doesn't look so thoughtful. So yes, we have a team in our in our office of electricity that's looking at grid reserve margins across the different uh areas of the country and we're looking at planned retirements and then we're going to try to proactively engage with all of them of why is this asset retiring? Does it make sense?
▶ 2:50:32Is there a better plan here? And if it is retiring, what's going to replace it? Um, that's equally dispatchable and firm reliable and won't add to the cost of the grid or increase the either increase the cost or reduce the reliability of the grid. Good.
▶ 2:50:47My bill would bake what you're doing into law and basically require it so that before anybody could retire a unit um in one of the regions that have an elevated elevated reliability risk, they would have to prove that it's being replaced in advance by equally um reliable power.
▶ 2:51:08and and then if it isn't then they they would give you and for tools to require that they run and some uh financial support to help cover those costs so it doesn't fall on the rateayers and I view this as being a you know this might be a five-year thing this might not be forever but right now we're behind so let's stop retiring let's make sure we're bringing new resources on as quickly as possible I stand with my colleagues across the aisle to work on permitting reform to bring things up as
▶ 2:51:38quickly as possible. But meanwhile, we need to keep what we have. That should not be a partisan Thank you. Thank you for your leadership there. Oh my goodness, I'm already out of time forward to working with you. And yields back and the chair now recognizes the gentle lady from New York's 14th district for five minutes for questions. Thank you so much, Mr. Chairman. Before I dive into my questions, I just wanted to clarify uh some some of the exchanges that that happened recently.
▶ 2:52:08First and foremost, there was a uh kind of an insinuation that after confirming that solar and renewable energies receive public subsidy, uh there was a there was a little bit in the exchange that folks may have insinuated or taken from it that fossil fuels do not receive uh public subsidy. That's not what you're saying, right? Correct, Mr. Secretary? Uh nowhere near of the same magnitude.
▶ 2:52:36And it's very there's controversy about how to count them. I would say no meaningful subsidies today for oil and gas in the United States. Okay. I I think you're right in that there's a disagreement in that. Um because I think what most people consider a subsidy is public use, public resources, uh going to an industry or corporation.
▶ 2:53:00in 2022 alone, we're looking at 10 to52 billion dollar in direct subsidies. Anywhere between, again, depending on how you count it, $1.5 to 7 trillion globally um in the fossil fuel industry receiving subsidy in addition to tax breaks in add in addition to uh also public lands.
▶ 2:53:25I was the chair of the energy and mineral uh ranking member of the chair and energy mineral uh resources subcommittee on natural resource and public lands alone that we had leased for pennies on the dollar for oil companies to um drill on. I think those would be considered subsidies but there may be a difference of opinion there.
▶ 2:53:45Um, additionally, the other thing that I wanted to clear up as well is uh this exchange previously on the immigrant workforce for many of the oil fields and um and the industry. You stated that there's a difference between il quote unquote illegal immigration and legal immigration. Uh but what is your stance on the ending of legal status for immigrants in the United States who are here documented?
▶ 2:54:15the devil's in the details. So, I don't I don't know enough about the issue you're raising to give a comment. I'm very passionate about immigration and all that, but I'm not sure exactly the question you're asking. So, there are hundreds of thousands of legally documented immigrants here, many that work in um in the energy sector that you know are here under different kinds of authorizations. One being temporary protected status that Mr.
▶ 2:54:39VC had raised and the administration is ending this status that provides a path to work permits, legal work permits for huge sectors of the workforce in the United States. Uh are you supportive of of these work authorizations? Again, I'm I'm not actively working on immigration policy and all that. I I don't think I have a thoughtful response to that. Understood. I'll um get back to my question line.
▶ 2:55:06In in a February interview with Bloomberg, when asked what oil prices you are targeting as secretary, you stated lower is better. And I take it you stand by that statement. Correct. Yes. In in general, lower is better because there's far more consumers than producers. And even if that means oil company stock prices falling, I don't think American consumers should worry about the stock prices of oil and gas companies.
▶ 2:55:33We you you do need a healthy sector to actually produce, but that's what a market mechanism does. It the cure for high prices is high prices and the cure for low prices is low prices. And I think we're in agreement there. Um given your statement on aiming for lower oil prices, what are your stances on the president's tariffs that are increasing costs of production? There's lots of impacts on there's lots of things that impact the cost of production.
▶ 2:56:00Most of what the president is doing is going to meaningfully lower the cost of production. But his his agenda to try to reshore heavy industry manufacturing in the United States, I think it's good for the country in the long run. Thank you. I'd like to reclaim my time. You know, there are several uh there's an industrywide uh consensus here. There has also been a survey a survey in March of oil and gas companies by the Dallas Fed which were littered about complaints around uncertainty.
▶ 2:56:29Companies in this survey commented on the rising cost for materials like steel, which was subject to a 25% tariff at the time and is now subject to a 50% tariff as of June 4th. Steel is obviously a very important input in oil and gas production and energy production large. Um, Mr. Chair, I would like to seek unanimous consent to enter these complaints into the record. Um, and without objection, so ordered. Thank you.
▶ 2:56:57Um, Secretary Wright, how does the president's terrorist plan and policy particularly around steel align with lowering costs for reducing uncertainty? Well, if if I could interject, the lady's time has expired. If you could answer that in writing, um, it'd be appreciated. Thank you. I'll do that or we could talk another time. Great. Thank you. The lady's time has expired and the chair now recognizes the gentleman from South Carolina 7th district for five minutes for questions. Thank you, uh, Mr.
▶ 2:57:26Chairman and Secretary Wright, thank you for your testimony today for for joining us. Uh I represent seventh district of South Carolina. Um it was one of the fastest growing regions in the country. Uh from the beaches in Myrtle Beach, uh to the industry hubs of Florence, um we're seeing a surge in population, in investment, and of course with that, Mr. Secretary, comes energy demand. Our economy is being transformed by advanced manufacturing, high-tech data centers, and a world-class digital infrastructure.
▶ 2:57:57Um, and thankfully, um, South Carolina is leading by example. Over half of our electricity is generated by nuclear energy, which is clean, reliable, stable, it's resilient. Um, we're home to facilities like the Robinson plant in the district, uh, which represents enormous potential for largecale nuclear reactor development. Uh we have a skilled workforce. South Carolina always has in this in this industry. Uh and we have u institutional expertise.
▶ 2:58:25What we need now I think and what we've had problems with in the past uh under prior administrations is uh we need a federal partnership to match that ambition. Um, I think we've heard on the oversight committee last year uh the delays with the DOE under Secretary Granholm about how uh the problems that they were facing and that they at least were envisioning ways that they could cut through the red tape and make sure that we could plug in uh nuclear power in an affordable way in this country.
▶ 2:58:52Uh as you're aware, South Carolina is a leader in that national or the nuclear energy uh uh certainly with the Robinson plant and several others. Um what specific actions would you like the committee to consider uh whether it's new legislative authority uh or regulatory streamlining uh to ensure that the loan programs office can fully support this next wave of nuclear development and deliver results for communities like mine in South Carolina?
▶ 2:59:24Yeah, great great question. The nuclear power industry has been hampered by, you know, a growing regulatory burden. I I've used this example before, but if you brought Grand Central Station, the train station in Midtown Manhattan, you know, to the NRC, it could not be permitted as a nuclear power plant because its radioactivity is too high. That's just naturally occurring radioactivity in the granite in the building.
▶ 2:59:52So they use a thing called linear no threshold high threshold radiation we know is very hazardous to human health and then they extrapolate how hazardous and they extrapolate that all the way down to zero to say that the tiniest amount of radiation you know is harmful and so the thresholds below which you have to get are very hard to achieve and very expensive. Um I I lived in Colorado before I got my new job. There's a lot of extra radiation just living at high altitude.
▶ 3:00:22um fine in an airplane. So to me, what we need is just reasonable regulation. Everybody wants to protect the environment and human health. My gosh, you know, we're but but spec specifically about the loan programs office, uh how can how can that be synthesized? What can we examine with that from a congressional standpoint uh to make sure that that advancement Sorry about that. um on that. So, we've put in a request.
▶ 3:00:51You know, we're con concerned right now. We spend over a$130 for every dollar we collect in taxes. So, everything is uh is very skinny right now. But we put in a $750 million credit subsidy request. If that got raised up and increase my lending authority for to support nuclear projects, unquestionably that would be helpful.
▶ 3:01:15the first nuclear plants that will be built won't be cheap because the industry hasn't built much for 30 years, Vogle aside, but we haven't built much for 30 years. So in and and I and I can assure you it will be used responsibly behind uh creditw worthy equity investors. I think it is it is a helpful tool. Something like a VC summer in Jenkinsville, South Carolina potentially. Yes, that would be like a prime example of that. Certainly. Absolutely.
▶ 3:01:43So I I think I'm a believer that that energy sources with time should stand on their own. But if you see an emerging thing like nuclear reemerging or geothermal just emerging, I think a loan program office for a finite time period there can be helpful to launch those emerging sources. Thank you for that, SE Secretary. And looking ahead, how do you envision the department supporting utilities and developers, investors trying to build out grid infrastructure that can handle the next generation of nuclear uh and data center load, particularly in rural areas?
▶ 3:02:13I think that's a big concern probably on both sides of the aisle is is a a a recognition that that we need these uh we need these things in rural communities. Yes. And and and I did we we have heard permitting reform on both sides of the aisle. It is very important. We need to be able to build things in this country again which is transmission lines or even just reconductoring transmission lines. We need to be able to build that infrastructure and connect plants where they are.
▶ 3:02:39Check the gentleman's time is expired, but if you'd like to also answer that in written form, that'd be great. And the chair now recognizes the gentleman from Massachusetts 4th district for five minutes for questions. Thank you, Mr. Chair. Secretary, welcome. Appreciate your testimony today. Uh you've spoken a lot about the power of markets to deliver energy dominance for the United States. I agree. I believe in markets.
▶ 3:03:05I think they work well and uh they are the key for us to control our own energy destiny as a country. Would you agree that one of the roles of government in making markets work better is to establish technology neutral policy with clear consistent predictable regulation. Yeah, clear consistent regulation is is uh very helpful for industry and technology neutral.
▶ 3:03:33That that uh it it depends what you mean by that word. Well, the reason I ask is uh I represent Massachusetts, which had a number of projects in the works for offshore wind, and I understand a lot of my colleagues don't think offshore wind is going to work. I understand some investors don't think offshore wind is going to work. Um, shouldn't markets be able to decide that for themselves?
▶ 3:03:56Like, if they are able to put steel in the water and deliver power reliably, why should the federal government cancel I think it's a it's a I I understand where you're coming from. Uh, Representative, it's a complicated question. And do you agree with what Secretary Bergam has done where she's functionally issued a moratorium against offshore wind, including for states and developers that are willing to take on the risk and see if it can deliver? The question is who's willing to take on the risk?
▶ 3:04:23The history of offshore wind first in Europe and here has been a train wreck. It's meant higher electricity prices and less stable grids. Right? and state governments and private developers are well able to see the same track record good that you're able to see. They are proposing to innovate and develop and take risks just like geothermal or nuclear. And I'm not a technology expert for clean energy. I don't know if it's going to work.
▶ 3:04:44What I do know is I don't understand why one bureaucrat in Washington DC should be able to say yes or no, especially when you're pointing out rightfully that investors are not going to want to put billions of dollars down on the table over decadal time spans if a new administration comes in and rips up the contracts, right? I mean, does this send a good signal to energy investors that they can put hundreds of millions of dollars down and it gets thrown out It's a challenging issue of what the right thing to do with wind power.
▶ 3:05:12There's also a lot of public outrage just because the footprint, the visual footprint and the footprint of waters is large. And so there's there's a growing movement. Let's be candid rural people. The outrage is because there were offshore wind farms off the coast of Scotland and the president's golf course. That's why he's mad about it. And people who want to invest in new clean energy sources should not have to worry about whether the next president does or does not like turbines off of his golf co golf course.
▶ 3:05:38Let's talk about uh another issue, an issue where we may see more eye to eye, which is geothermal and nuclear. Strong supporter of both. Uh I think they're critical. And you've already talked about the loan program offic's really vital role in potentially both of them. I was interested to hear the gentleman from South Carolina concerned about the LPO because he voted along with all the other Republicans in the reconciliation bill to resend nearly all of the LPO's unobligated credit subsidy.
▶ 3:06:03Would you encourage the the Senate and the House to restore the LPO's credit uh uh ability to issue loans as part of this reconciliation package? Um I I would I think we have to be cautious and judicious with funds and the loan program office as I described has a recent pretty poor track record. So I understand the reticence but yes I do I do think it's a helpful tool.
▶ 3:06:27Uh can you talk about the types of technology in nuclear and geothermal that you're most excited about? I'm going to give you a minute here because I know this is an area that you're excited about. Uh small modular, you talking about large reactors and then geothermal. What are you seeing with the super hot rock geothermal like the microwave technology? Do you have any opinions on where are the most promising avenues of innovation? Well, I think you mentioned several of them. So yeah, to to me energy should be about humans and math.
▶ 3:06:55So it's what it's where the math works. So right now using dry rock and sort of depth of shale wells, you know, 6 to 12,000 feet deep that I think is rapidly becoming commercially viable to inject water, produce it out the other end, produce electricity. What about the millimeter technology like from companies out of the plasma lab at MIT that are trying to go 7 to 10 miles deep? Super exciting.
▶ 3:07:22So that's earlier stage, but yeah, should we support research like that? 100%. Could that be a big deal? Absolutely, it could be a big deal. Just to be clear, those kind of technologies would rely on both the LPO and the tax credits that this reconciliation bill is threatening. I mean, we do need for markets to to bring innovation to bear across long time cycles and a lot of uncertainty. You do need public dollars and regulation to derisk private capital.
▶ 3:07:46Yes, I have advocated in this legislation right now to have nuclear, geothermal, and fusion as three emerging sources to get tax credit treatment. You know, maybe through an end date, like if you're under construction by 2031, it has to have an end date, but I'm with you. I understand it. And you and I both know the reconciliation bill does not do that, right? And you Thank you very much. Chair now recognizes the gentleman from Alabama's sixth district for five minutes for questions.
▶ 3:08:17Thank you, Mr. Chairman. Uh, Mr. Secretary, I want to talk with you about a couple of other issues that that really impact energy, and that is our access to critical minerals and rare earth elements and the ability to process and refine those. I think that it's very clear now, it's not only a threat to our economy, but to our national security. Can you address the power needs that we're going to have if we are able to ensure the processing and refineries for rare earth elements?
▶ 3:08:48Yes. Uh, Representative, I think I I think you raised a key point like China has made a multi-deade strategic decision to own the supply chain for rare earth elements and the magnets that are constructed from them and they are in a amazing amount of devices across our economy and across the developed world's economies and uh and and and we are vulnerable right now. We should be able to do that in the United States.
▶ 3:09:15And it is a case where I think we need to figure out how to make that happen. I will be next month at a mine in Wyoming that'll be the first rare earth element mine opened in this country in 70 years. Um, but a mine's not enough. We need that processing and refining done in this country. And it is a it is a urgent effort to assure a a more a better domestic supply of critical minerals that are important to our economy and our national security.
▶ 3:09:43There's uh basically two types of rare earth elements. You you've got the heavy elements that require even more refining uh technology and and and it's a very power demand industry. U in order to meet that we're we're obviously going to have to build out our our generation capabilities. You and I have had this discussion before about how we've shuttered almost 300 coal coal or hydrocarbon power generation facilities. The transmission lines are still there.
▶ 3:10:12One of the things that I'm looking at and I'd like for you to comment on it is uh looking particularly in some of the more remote areas using small modular reactors which my Democratic colleagues I think are on board with to match the generation capacity of the SMRs to the to the capacity of the transmission lines but also look at that those as possible sites for a processing or refining facility. Any any thoughts about that? I I think it's a great idea as well. You're right.
▶ 3:10:40These refining facilities, just like data centers, are energy intensive and they're only going to be here if they have affordable, reliable energy. And small modular reactors and different nuclear technologies are fantastic candidates to do just that. Well, the other thing about it too is that when you you have create this additional demand for power, it it's um you start pricing out uh residential and other uh business and commercial. And we want to do this in a way that it doesn't raise prices.
▶ 3:11:10So we got to be really smart, really strategic about building out our power generation uh so that we not only can can address what I think is clearly an economic and national security issue and our reliance on China uh for for refined critical minerals and rare earth elements, but also at the same time not do harm to the economy, not do harm to middle class Americans. So, um, again, you and I have kind of talked about this a little bit.
▶ 3:11:37You you take an all of the- above approach, but to do this, we cannot do it with renewables. You've got to have a reliable base load. Uh and and when you have the on the same power generation facility, residential, commercial, and then these heavy you you've got to have um a consistent base load that also able to meet these peak demands. Is that accurate? That's accurate. I I agree very much, Representative.
▶ 3:12:07And and I think you make another critical point, not just that we need to keep the cost down, but to keep Americans on side with the re-industrialization of this country. If they see factories and data centers come and all their paying their bills becomes more expensive, they're not going to support what we're doing. But if it brings jobs and economic opportunity and doesn't drive up the price of electricities, we start an American renaissance of manufacturing. I've only been here 10 years uh in Congress, but I've worked for two international engineering companies.
▶ 3:12:36uh ran a think tank for almost 25 years. So I've I've kind of followed uh people who fill your position as secretary of energy and and I've never in my u experience someone like you and your whole philosophy and I'd like for you to comment on that uh through you put out this publication on bettering human lives and your whole perspective about energy policy is is focused on bettering human lives. Could you just comment on that after he finishes?
▶ 3:13:06I'll yield back. Mr. I say only two things matter with energy, humans and math. Right. We we only produce energy for one reason to make our lives better. It shouldn't be political. We shouldn't give it stupid names like clean or renewable or dirty. The these are these are just marketing terms. We should be serious about energy because we want to better human lives. Thank you for the job you're doing. I yield back. Well, thank you. The gentleman yields back and the chair now recognizes the gentleman from California's 15th district. Five minutes for questions. Thank you, Mr. Chair. Thank you, Mr. Secretary, for being here today.
▶ 3:13:36Last August, President Trump promised to cut energy prices in half within a year, but it looks like he's going to fall far short of that goal. According to the latest forecast by your agency, national electricity rates are going to increase this year by 5%, which would outpace predicted inflation. Now, we're faced with a proposed budget that will raise the prices of electricity and natural gas for everyday Americans.
▶ 3:14:01The Senate is considering a reconciliation bill that would kill clean energy tax credits that were created in the Bush administration. By definition, this will make energy more expensive. Some Senate Republicans acknowledge these changes would quote translate into immediate utility bill increases, placing additional strain on hardworking Americans. End quote. Multiple studies have shown this would increase energy bills by as much as $400 a year for an average household. So, Mr.
▶ 3:14:30Secretary, uh, please tell me, what is your agency's plan to protect consumers from increases on their energy bills? Uh, we need to do everything we can to unleash more energy production in the United States and reduce regulatory burdens. I think we've accomplished a lot in 120 days, but the energy system is large and complicated and can you turn this ship on a dime in 120 days? No.
▶ 3:14:56But I think the this administration and the president's actions have done a lot to change the trajectory on the energy prices going forward. Most energy prices actually that consumers see actually are lower today than they were a year ago and they were lower today than they were at inauguration. Your comment that by getting rid of subsidies by definition will make energy more expensive in this rare case is actually untrue.
▶ 3:15:21The subsidies on wind and solar which have cost the government of order a hundred billion dollars have actually led to not only that cost, they've made electricity bills more expensive. So they're they're the worst subsidies and that they actually make the product more expensive at the end. We'll disagree with that uh assertion, sir. Uh amidst rising costs, your agency along with health and human services has proposed to completely eliminate programs that help families with their bills.
▶ 3:15:47Specifically, I'm referring to the weatherization assistance program, which lowers costs for consumers and the low-income h home energy assistance program known as lie. I'm sure you're familiar with that. Helps households afford their utility bills. 7 million Americans rely on these programs, helping families uh not to have to choose between putting food on the table and paying their electricity bill.
▶ 3:16:08Last year in my district over 1,600 households used lie heap or weatherization assistance programs all of which uh almost all of which were elderly disabled or those with young children. So please tell me why you want to eliminate those programs. I'm very passionate like you are representative about energy costs.
▶ 3:16:26I want to do everything in our power to lower the cost of energy for low-income families, which is number one, which is why the policies over the last four years and and broadly over the last 20 years that have made it harder to produce energy in this country and have forced onto our grid intermittent, unreliable sources that necessarily make the grid more expensive to operate. I I have said have not only been economic wrong, I view them as immoral.
▶ 3:16:53uh in in your state of California, you had similar electricity prices to California 15 years ago. Today, there are twice. And you have the highest adjusted poverty rate in the nation in the state of California. And the core of that is making electricity expensive and pushing jobs out of the state and impoverishing low-income people. I'm with you. We should go the opposite direction, not that direction.
▶ 3:17:15During your Senate confirmation hearing just four months ago, you stated, quote, "I've studied and followed the data and the evolution of climate change for at least 20 years now. It is a global issue. It is a real issue. It's a challenging issue, and the solution to climate change is to evolve our energy system. Uh, I couldn't agree more, uh, Mr. Secretary.
▶ 3:17:34So despite that clear assertion, you your proposed budget request rolls back billions from innovation initiatives and from clean energy programs, the very efforts that are central to evolving our energy system, including those uh with California leadership. By the way, thank you for that. Um do you believe your energy uh agency has a role in cutting emissions and protecting Americans from the impacts of climate change?
▶ 3:17:58uh the the way to cut emissions as I said then and as I say now is to is to move to new energy technologies. Natural gas displacing coal is the largest source of electricity in the United States. Coal is still by far the biggest globally but gas is second and growing fast. Nuclear is the reliable dispatchable energy source we have that has there's no such thing as zero but has lower greenhouse gas emissions. Geothermal is another one.
▶ 3:18:26But but again to try to follow the model of California or Germany or England, if you make electricity expensive, you just impoverish people and industry just leaves that state. It's not part of fighting climate change. It's just part of impoverishing people and relocating industry to lowerc cost energy places. That's not the path for climate change in my opinion. And the gentleman's time has expired and yields back. And the chair now rep recognizes the gentleman from Colorado's 8th district for 5 minutes for questions.
▶ 3:18:58Thank you uh Mr. Chairman, ranking member, and of course, thank you, Secretary Wright. So good to see a fellow Colorado here. Um not the least of which being, uh I got I'm going to try to squeeze in four questions so I don't have to lay out for you the uh the situation in Colorado. So straight to the first question. Uh we know that in in in the part of the state that I represent, we've got a lot of oil and gas workers drilling.
▶ 3:19:19Can you talk about how uh the department, your department uh can work with that existing workforce to uh increase um uh projects that are happening around geothermal and that base load generation from geothermal power? Yes. And and uh again, great to see you, Congressman Evans. I appreciate your service. Yeah. G the next generation geothermal that's coming along uh right now, we used to call it hot dry rock. Now they call it enhanced geothermal systems.
▶ 3:19:48It uses oil and gas technology, uses shale well technology to drill into dry rocks that don't have any hydrocarbons in them, but are just are just hot and inject one, you know, in drill and frack wells, inject water into it, flow it through the rock and produce them out of other wells. So, it's very much the same kind of training and workace as people working in oil and gas in Colorado.
▶ 3:20:12In fact, the same companies are are not only could but they're interested in developing that next generation geothermal resources. Colorado has these resources in place. There's a 400 megawatt project under development in neighboring Utah. But can that also happen in Colorado? Absolutely. Um and if that activity starts to go, is there a workforce that's excited and willing to go into that? Absolutely. Will will a number of those come from the oil and gas industry? I'm sure they will.
▶ 3:20:42Great. Great to hear that. Next question. You know, unfortunately, we know that there's an epidemic of premature um uh retiring base load generating stations. Colorado alone accounts for 10% of the base load power in the nation uh that's forecast to come offline this year. And so, while we know we need to reverse that trend, we also know that there are certain bottlenecks and regulatory um barriers to being able to get the dispatchable base load power that we need.
▶ 3:21:08So for the present moment, can you speak to the importance of variable power, wind and solar coupled with battery to meet the energy demands of the present moment? Yes. So look, solar has made tremendous technical progress, you know, in the last 10 years and I think continues to do it.
▶ 3:21:26So if if for example if you're an island energy grid and you're getting your power from diesel and you could supplement that with solar you can burn less diesel you can drive down your electricity costs in in domestic United States where we can pull from all different energy sources.
▶ 3:21:43Uh solar has applications in some areas and below a certain penetration level, but until you can get multiple days of energy stored, um it's it's it's it's going to be a supplemental energy source. But in summertime where peak demand is near the end of the day, if you have solar panels there and you have a few hours of battery storage, you can move that late afternoon electricity into the peak demand time uh before people go to bed.
▶ 3:22:12So it can play a role and and without subsidies you'll get wiser decisions about where does it make sense and where does it not make sense. So nothing in what I've said to get rid of these subsidies says get rid of the technology. Solar is going to be around. It's going to be around for the long run and I think it continues to grow. Um but even in an optimistic scenario it doesn't likely ever get to 10% of global energy. Not just electricity is just one slice of energy.
▶ 3:22:41But I think solar has a future and any technology with a future can survive and should survive without subsidies. You know, 25 years maybe is enough. Thank you. And then let's see, we got a minute and 4 seconds left. So the United States hasn't tested a new reactor design in close to 50 years. Nuclear reactor design. President Trump recently expressed desire to see a test by July 4th, 2026.
▶ 3:23:05What can Congress do to provide you and the department with the resources need to expedite the testing of a reactor for commercial use by 2026? Yes. So, our our goal there is at the Idaho National Laboratory, which is our sort of commercial nuclear lab in Idaho. They've got a lot of land there and a tremendous amount of just fantastic scientists. So, and there are commercial businesses that have new reactor designs coming up. We want to get them into our test containment vessel and run them.
▶ 3:23:35So I think what building nuclear as as more of a bipartisan issue in this Congress has been helpful. Look to really unleash nuclear going forward. The NRC has got to become more efficient and more sensible in regulations. We've got to get if you approved your reactor design and it's a small modular reactor, you're going to build the same reactor. You can't have to start from new every time. You just got to evaluate the new site location.
▶ 3:24:00So common sense permitting reform at NRC uh is helpful and that's certainly under the jurisdiction of this Congress, but we're working it at the administration level as well. I've got some optimism there, Representative Evans, but yes, it's going to take us all working together. And the gentleman's time has expired and yields back and the chair now recognizes the gentleman from California's 25th district for five minutes for questions. Thank you, Mr. Chairman. Secretary Wrights, nice to meet you.
▶ 3:24:28Uh, I represent California's 25th district is the southeast corner of California, an area with one of the nation's most promising opportunities for battery manufacturing and critical mineral development. It also produces the most renewable energy on federal land in any district in the United States. So, we have an abundance of solar power, wind, and geothermal energy.
▶ 3:24:54Uh, and I know you're here to discuss the budget, uh, but to highlight what this budget means for my district and for our nation's energy future and security, I need to tell you about the real impacts of these budgets in for the people in my districts and our nation's potential. uh because it determines whether families can breathe clean air, whether young people find good jobs at home, and whether rural and low-income communities are included in this uh energy future or left behind.
▶ 3:25:25You see, critical minerals like lithium, cobalt, nickel, and rare earth elements power our phones, cars, and electric grids. Yet, we are far too dependent on foreign adversaries, especially China, for their supply and processing, and including for batteries. Uh this dependence isn't just an economic vulnerability. It's a national security threat that demands a bold domestic solution. And that solution, Mr.
▶ 3:25:50Secretary, is right here in Lithium Valley domestically located in Imperial County within my district. We sit on uh the world's fifth largest lithium uh accessible through a closed loop system while we produce geothermal energy because it's it's carbon free and it basically takes the geothermal brine and extracts the lithium out of there and all these other uh critical minerals as well.
▶ 3:26:20We have so much lithium that I want to put it into perspective. The lithium reserves in lithium valley alone can supply enough battery grade lithium to power over three million uh electric vehicles uh significantly reducing our dependence on foreign supply chain while driving domestic manufacturing and good jobs.
▶ 3:26:38And I know some people are averse to electric vehicles, but we have enough lithium to produce the batteries that we're going to need for AI and the uh the future industries and technology that we need. Uh but here's the challenge. Uh sometimes, you know, they're located in areas where we need more development. Imperial County is one of the most underserved and economically disadvantaged region in in the country.
▶ 3:27:06It's an area hungry for jobs, hungry for infrastructure and investments. There's been a lot of investments already to develop workforce development with local community colleges, a lot of investments to pave the the uh the roads and and fix the the bridges in order for us to anticipate the mass production of this lithium.
▶ 3:27:26So I want to ask you, you know, how will the DOE help ensure that critical minerals funding reaches these rural and underresourced regions like Imperial County and that companies in Lithium Valley have the tools uh workforce and certainty needed to grow and deliver on this national priority.
▶ 3:27:45Yeah, I appreciate very much your comments and questions and yes, affordable reliable power should be for everyone partic rural communities face great challenges in this area because you can't bring industrialization without affordable energy there. Um I I I'm quite excited about the opportunity with lithium in the brine and hot brines to get energy out of it, to get critical minerals out of it.
▶ 3:28:09I I share your passion and excitement for that and would absolutely love to see a development go forward with that. That's certainly one of the things that's will be evaluated at at the Department of Energy. Um but but but there's a lot of there's a lot of positive ingredients going on for what you've got going on in that community.
▶ 3:28:28Well, I know that company Energy Source is currently negotiating one of the loans uh with the Department of Energy, and I I encourage that process to to to come to completion so that we have the capacity of mass- prodducing uh lithium within within months, less than a year. And that's something that we really need. I've sent you a couple letters. Uh so, I'm inviting you to the district.
▶ 3:28:50So, I'm going to take the opportunity here face to face uh eye to eye and ask you if you'd commit to come into the district, see firsthand what the progress has has been made uh in this arena. Your predecessor uh has done that and would love for you to come by and you'll see that there's a lot of bipartisan support for for this development. I I'd love to as well. I I think it is an exciting area of potential development.
▶ 3:29:15Um, and and I am interested to go with you deter that schedule I can't commit to right now, but I but I I will go out there with you and and and I think it's worthwhile. I should say one last thing about electric vehicles. I or I think anyone in this administration don't oppose electric vehicles. They're neat and and they're dominantly bought by wealthy people. We're just opposed American taxpayers subsidizing wealthy people to buy electric vehicles. We're not against electric vehicles and and they're like solar. They're going to continue to grow.
▶ 3:29:41If I could interject, the gentleman's time has expired and the chair recognizes the gentleman from New York's 23rd district for five district questions. Thank you very much, Mr. Chairman. Mr. Secretary, thank you for being here today and answering our questions. is a member from New York State.
▶ 3:29:56Uh I've seen firsthand how states like mine with overly aggressive rush to green policies worked handinhand with the Biden era Department of Energy to advance their radical agenda jeopardizing affordability, reliability uh and price for ordinary Americans in the process. So looking at the department's state energy offices, Mr.
▶ 3:30:16Secretary, what action is the department taking or planning to take to reset the direction of the DOE's state energy office funding to ensure that it better supports affordability, reliability, and technological neutrality? Uh, uh, Congressman, I'll have to get back to you on that. on the state energy offices. I have not been I've been directly involved with talking to numerous governors about energy policy um but but not directly through the state energy offices.
▶ 3:30:47I wish I was more informed on that. Okay, great. And we will follow up with you on that. And has DOE considered creating a funding category specifically for states seeking to expand dispatchable energy, modernize their grid base load capacity, or uh preserve affordability rather than aggressively pursuing climate benchmarks? Well, our our our view on funding has not been so much state by state as project by project.
▶ 3:31:14But yes, the that go as you said projects that are going to deliver affordable energy and drive down energy costs and grow energy supplies. Those are the kind of projects we're looking to support and and things on the other side that are ultimately going to make energy more expensive or less reliable. We are, you know, the math on them doesn't pencil out as well. So less of the money is going to go in that direction. Thank you, Mr. Secretary.
▶ 3:31:36I'd like to end my time here focused on President Trump's executive order signed April 8th uh titled protecting American energy from state overreach. Uh how is the department interpreting this executive order? And has the department taken any steps to identify state level energy mandates or regulations that may be inconsistent with the federal interest in energy affordability and reliability.
▶ 3:32:00We are we are look looking at that both uh through our legal team and I and I should uh maybe not I don't I don't have too much to elaborate in that right there but in your state of your great state of New York I should say is an area I and others in our department have focused on because it in facts the that the actions of New York have impacted not just New York and New Yorkers but all of New England.
▶ 3:32:23So the two natural gas pipelines, the Constitution pipeline and the Nessie pipeline would have lowered the cost of electricity in New York State lowered the cost of heating home heating in New York State. Improved air quality by converting a lot of legacy fuel oil burning heating systems in people's houses to natural gas and brought more natural gas through your state into New England. so they could also lower their electricity prices, their home eating costs, and their ability to build industry.
▶ 3:32:53So to your point, it's sort of a poster child of state actions that hurt the residents of your own state and of neighboring states. And and to go that take that one step further, the tremendous Marcela shale that has changed not just US but world energy circumstances, it goes under the state of New York as well, Western and Central New Yorkers.
▶ 3:33:14I represent the Marcelus Shale in my district and you know they have they have truly stolen a generational opportunity that could have transformed our economy, could have lowered our uh home heating costs and and provided plentiful natural gas throughout the the northeastern states. And as one of the only northeastern members on this committee, I think this is an important platform uh to have that conversation.
▶ 3:33:36Um, and I really appreciate you bringing that up because, uh, you know, we have a war on natural gas unfortunately in New York and many other new New England uh, you know, area states and it it is it is taking our economies in the wrong direction. I think your leadership here is so important. You represent that district and to give it you said a war on natural gas in your state. Well, what's New York's biggest source of electricity by far and away? Natural gas. And they passed a law saying you can't heat your home with natural gas.
▶ 3:34:07You have to heat it with electricity. Which means instead of burning one unit of gas, you got to burn two and a half units of gas at the power plant and then transport it via transmission lines and make home heating three times as expensive and burn twice as much gas to do it. That's not a war on natural gas, which is what New York relies on. That's just a war on common sense and a war on your citizens. Common sense is missing in the state of New York.
▶ 3:34:30I'd love to work with you on on finding a plan and finding any federal interest where we can try to repower our shuttered coal power plants in the western end of our state uh into you know clean natural gas plants and and put some real power on the grid instead of taking power off at all times. So I really thank you for being uh with us secretary. I look forward to working with you congressman. All right y the gentleman's time has expired and yields back. The chair now recognizes the gentleman from Louisiana's second district for five minutes for questions.
▶ 3:35:01Thank you, Mr. Chairman, and thank you, Mr. Secretary, for for being here. Uh, I represent Louisiana, which has served as America's gas station for the past century, drilling, refining, and shipping oil and gas worldwide. Just like how innovation is, traditional energy resources has become an economic boon for America. Investments in other forms of energy could transform Louisiana's economy.
▶ 3:35:26We must do so, and I think you'll agree because you've said comments to this effect, that we should do it in a way that we protect communities. That that we recognize our number one commodity are healthy communities, healthy people, making sure that they have access to clean water and clean air. So I appreciate your agreeing in in that regard. Uh Louisiana has existing infrastructure and skilled energy workforce to be a leader in the 21st century energy.
▶ 3:35:52Our expertise can be leveraged to develop emerging energy sectors like offshore wind and hydrogen. Port Fushon, our deep water port in coastal uh Lefuse Parish is ideal for building, deploying and maintaining offshore wind projects. Additionally, abundant natural resources and pipeline access across Louisiana can support large-scale hydrogen production and distribution.
▶ 3:36:17However, the Trump administration's actions has halted new offshore wind leases and permitted permitting and approvals for existing projects. These decisions have cast uncertainty over hundreds of megawatts of planned offshore wind capacity. Meanwhile, according to recent Bloomberg report, the current vision of the Republican reconciliation bill will severely limit the amount of renewable energy capacity the US adds over the next decade.
▶ 3:36:48Wind, solar, and storage capacity would drop by 10% by 2035. The impact of wind power would be most severe with new capacity shrinking by 35% and no offshore wind additions in 2028.
▶ 3:37:04Secretary Wright, in your confirmation hearings, you committed to an all of the above energy strategy, and I applaud that to include both conventional forms of energy as well as renewable energy, but you've appeared before the House committee last month and said, quote, "I've never been for all of the above myself." So, which is it, sir? Can we count on you to be for all of the above? We know that this is important. We know what we have to do as Americans.
▶ 3:37:33We cannot do the same old thing expecting a different result. Our world is changing. Our climate is changing. Wouldn't you agree that we have to do better than what we've done? I've been about improvement and innovation and energy my whole life. As a 17-year-old kid, I went to college to work on fusion energy. I worked on solar energy in graduate school and geothermal right after. I only got to oil and gas a little bit later.
▶ 3:37:58Um, so, uh, Congressman, I appreciate your passion on these issues, but I I have never been for all of the above. And if I said it at one point in time, I misspoke. I have always been tried to always be very careful in my words that all energy is too important to mean everything. Just do it all. My my thing about energy, are you against solar? Are you against wind? Are you against wind? I'm against energy sources that make the energy system more expensive or less reliable.
▶ 3:38:29Solar has applications in many different energy systems around the world. Heck, there's probably even a few places where wind itself would be a positive for an energy system. So So these are these are all of the above. These are we're talking about and we we may have to do them in size and scale but I think you will agree that we can't afford to leave meaningful opportunities on the table uh if we want to maximize healthy outcomes for communities while making sure that we remain
▶ 3:38:59a robust energy producer. You come from a great energy producing state and I share your passion for more energy, but mostly what we've done with the subsidies through the federal government for wind and solar has mostly been negative. We've incentivized rich people and rich companies to build energy. I don't want to cut you off, sir, because there's so much that we have to say. I just want to get a few things in real quickly.
▶ 3:39:24State Louisiana Hubs for Energy Resilience Operation Hero Project won a $250 million federal award. There programs like this that are so important for our communities. Projects for together New Orleans these communities will serve as residents for cooling off places. Their grants have been suspended. Uh can I can I get you to commit to at least revisiting them with me to see if there's a way to to revive them and bring them in the mainstream. These programs matter to the people in my district and they are ones that have been tested.
▶ 3:39:53They've gone through the appropriation process in a bipartisan way and survived. Let let's look into that together. I'm not sure exactly what you're referring to, but let's let's look into that. And and Mr. Chairman, if I could have 10 seconds, I'll just say the gentleman's time's expired. Votes are going to be called in 10 minutes. And we have um I just want to correct one record on Louisiana Blackout. But but if you could uh submit that I'll submit in writing. There was some comments that were made about Black House Louisiana. I just want to correct the record that they may not have been.
▶ 3:40:22The gentleman times expired and the chair now recognizes the gentleman from Pennsylvania, the vice chair of the full committee. 5 minutes for questions. Thank you, Mr. Chairman, and thank you, Secretary Wright, for appearing here today. Right now, the United States is in the pole position when it comes to advancing artificial intelligence. But just as in any race, competitors, and specifically China is right behind us.
▶ 3:40:47By the end of the decade, the data centers necessary for this ed AI could consume almost 10% of all electricity in the United States. In Pennsylvania, we have that necessary natural gas that you just mentioned to meet the increased demand and beat China in the AI race.
▶ 3:41:09If America wants to remain in the lead, it will require an all of government approach to follow through on President Trump's executive orders and restore American energy dominance. Secretary Wright, your department, you know this, will play a critical role in this work. One of the challenges that you will have to navigate is to balance between new energy demand for data centers and maintaining reliability for the electric grid.
▶ 3:41:37Recently, the DOE issued an emergency section 202C order requiring the operation of two legacy generation units in the Commonwealth of Pennsylvania past their planned retirements, citing, dofully noted as well concerned with resource adequacy and reliability. Federal policy from the Biden administration that disincentivizes the development of new dispatchable energy generation made your actions ultimately necessary.
▶ 3:42:08Now with the Trump administration and your leadership, we need to expedite these long delayed reliability measures. How can the DOE collaborate with state governments and authorities to ensure timely development and connection of new base load power so that the legacy systems can be taken offline as planned? Yeah, it's great question and and comments, Congressman.
▶ 3:42:34And in fact, just last week, I spent an hour or so with some developers trying to do a very large project in in your state that would take a legacy coal plant, convert it to natural gas, expand the size of it far beyond where it was, colllocate data centers there. And that's exactly what we want to see happen in this country. And as you said, winning the AI race isn't a nice to have, it's a have to have. This is a this is a national security issue.
▶ 3:43:02if China gets ahead of us in AI. And so what we're trying to do is get lists and it's not just the energy department, it's the federal government. We're trying to get lists of what are the roadblocks for you to get this permit or to do that. What are your problems? And let us dig into the government and find out how we can address those issues. But it's about permitting. It's about it's about moving some of the regulatory morass out of the way.
▶ 3:43:28Ultimately, we're going to have to fix the clean power plan 2.0 know that requires this carbon sequestration, you know, 10 years out into the future. Like that's just not going to happen. But if that law is in there, it's a huge disincentive to build new power infrastructure. So there's many things that need to be done. But you're right, Pennsylvania, you know, tremendous legacy as a coal mining state. Now it's got the greatest natural gas field in the world under your state.
▶ 3:43:55I think that with common sense government, the future of Pennsylvania could be very, very bright. Well, thank you. And I think that your ability to recognize that will allow those data centers to continue to be developed in previous, to your point, in previous settings that were coal powered plants. Moving on, part of ensuring a reliable power grid is creating an inviting and a predictable environment for new infrastructure investment.
▶ 3:44:21While it is imperative that we ensure federal dollars are only being used for worthwhile process, the review of many of the grants and loans made by the last administration was truly a lengthy one. Even projects that align with Trump's administration goals to unleash American energy can be left in an unsteady environment as the reviews continue to unfold. This dynamic can have a cooling effect on the desperately needed investment in generation, in infrastructure, and innovation.
▶ 3:44:53How can the DOE help provide more confidence to stakeholders who need who need to make time sensitive investment decisions while working through the investigation of waste, fraud, and abuse? Yeah, Mr. Secretary, if you can do that in 25 seconds. Very fair question, Representative. And we are moving as fast as we can. We got a process in place. We have a team in place. We're getting through, you know, maybe a dozen or more projects a week, maybe more than a dozen projects a week. And so by the end of this summer or middle of this summer, we're going to have clarity on most of the big projects.
▶ 3:45:23I want to do it as fast as I can, but given that track record, I got to do it responsibly, but I I hear your concern and let's stay in touch. Thank you again for your leadership in this. I yield back. Thank you. The gentleman yields back and the chair now recognizes the gentle lady from Michigan's 6th district for five minutes for questions. Thank you, Mr. Chairman and Mr. Secretary, welcome. We haven't had a chance to really meet. Uh I'm from Michigan and I'm a car girl. I I care deeply about the domestic auto industry. It's been my whole life.
▶ 3:45:54Um but since the inflation reduction act was signed into law, Michigan's led the clean energy manufacturing boom. We've seen over $40 billion uh in the private investment and more than 25,000 new jobs created with projections for up to 167,000 clean energy jobs over the next decade. And it's happening right now in retoolled EV plants, battery factories, and in rural and underserved communities across my state.
▶ 3:46:24But six months into this administration, we've already seen 14.2 2 billion in investments stalled or canceled in Michigan, jeopardizing over 2600 jobs. This is troubling to me, but I these spendings aren't these investments aren't just about public spending. They've unlocked historic private capital. Repealing the clean energy tax credits risks nearly $40 billion in Michigan investment alone.
▶ 3:46:52And meanwhile, China is watching and they're more than willing and ready to seize the market share we're giving up. And I'm glad to hear you say you like EVs. And I don't want to ban the internal combustion engine. I think we need both. I'm seasoned, not old enough to remember the 70s when the Japanese beat us. We weren't ready with small cars when gasoline prices went up. Well, here's a reality now. The de the global market wants EVs.
▶ 3:47:22That's a reality. And China is subsidizing the manufacturing of electric vehicles. They're manipulating their currency. They are using slave labor. And EVs have to be part of our product mix. Is forfeiting this market share to the Chinese Communist Party a smart manufacturing strategy? Do we have data that says cancelling these investments helps America competitiveness?
▶ 3:47:49And have we looked at how many jobs this is going to cost us? So, Representative, I love your passion and and I and I and and I want to see Michigan re-industrialize again. It's got such a proud, beautiful history and I I truly believe it has a proud, beautiful future as well. We have to make you and I got to work together to make sure we put the world on wheels and we're going to keep the world on mobility. No other country can beat us. I love it and I agree. I agree.
▶ 3:48:19You said a lot of things I agree with 100%. Number one, EVs and internal combustion. We want them both. Consumers are going to decide and electric vehicles are growing and they're exciting and they're going to keep growing and that's awesome and Americans should be the best builders of electric vehicles there are. Period. And I want that wholeheartedly. China, as you said, illegally subsidizes uh their their marketplaces. They they are doing it to try to undermine your state and your industry. There's no question they're doing that.
▶ 3:48:49Um and and the United States, I think a lot through tariffs is going to stop these these Chinese things that are not built in the same setting. You even mentioned slave labor. Literally, that is true. I know. And so, yes, we got to re-energize, redrive, readvance American industry, and there's many ways to do that. I'm in line with uh with a lot of those, which is regulatory environment, bring capital. In fact, the trip we did to the Middle East, everyone thought we're over there talking about oil prices.
▶ 3:49:18We pretty much never talked about oil prices. We talked about literally the trillions of dollars that these countries are developing by developing their energy resources that they want to invest in the United States. And what do they want to invest in? They want to invest in energy infrastructure in the United States and manufacturing and industrialization of the United States. There is a ton of private capital that wants to come to our country and do the mission you just passionately went on about.
▶ 3:49:45So I I will tell you this administration and myself personally are probably way more aligned with you uh than you think we are. Well, we're out of time and I know my chair is gonna uh we have 45 seconds. I want to invite you to come to Michigan. I want to work with you on EVs.
▶ 3:50:03We have to stop giving them a bad name because we can't compete in the global marketplace if people don't know that we here in America are going to build those vehicles and out buil build China, but they're competing with us. Communist China wants to destroy our auto industry and you and I have to work together to make sure that doesn't happen. Thank you, Mr. Chair, and I'll yield back. The gentle lady yields back and the chair recognizes the ranking member I believe for a couple of documents to be put into the Yeah. Thank you, Mr. Chairman.
▶ 3:50:32I'd like to ask unanimous consent to submit to the record. The the um first is an article from the New York Times from June 4th that the secretary said in general he supports he thinks low prices are better. This is um is a great uh summary. Electricity prices are surging. The GOP mega bill could push them higher. I recommend that to you. And then was that objection? And then the reference to to Florida's low electricity rates just uh this is I also recommend for your reading.
▶ 3:51:01Uh this is right now just over the past couple months they've asked for the largest rate hike request in US history uh up in the panhandle and we continue to grapple with higher rates. So I'll recommend that without the secretary for y'all back. Thank you. Thank you for those materials. And seeing no other members wishing to be recognized to ask questions today. Mr. Secretary, we appreciate you appearing before us today. Members have additional may have additional questions for you.
▶ 3:51:28I remind members they have 10 business days to submit additional questions for the record. And I ask that you could be able to submit responses within 10 business days upon response or receipt of those questions. I ask unanimous consent to insert in the record the documents included on the staff hearing documents list. And without objection, that is so ordered. And without objection, the subcommittee will stand adjourned. Thank you.