Akaka, Hon. Daniel K., U.S. Senator from Hawaii.... Bingaman, Hon. Jeff, U.S. Senator from New Mexico...... Watson, Richard H., director, Washington State Energy Office, Olympia, WA.. ....... Williams, Henry G., commissioner, New York Public Service Commission, NATIONAL ENERGY SECURITY ACT OF 1991 (Title III and Subtitles A and B of Title IV) TUESDAY, FEBRUARY 26, 1991 U.S. SENATE, COMMITTEE ON ENERGY AND NATURAL RESOURCES, Washington, DC. The committee met, pursuant to notice, at 9:40 a.m., in room SD366, Dirksen Senate Office Building, Hon. J. Bennett Johnston, chairman, presiding. OPENING STATEMENT OF HON. J. BENNETT JOHNSTON, U.S. SENATOR FROM LOUISIANA The CHAIRMAN. The hearing will come to order. In another committee on which I serve, the Defense Appropriations Subcommittee, we are dealing today with the cost of the war in the Gulf. The cost in the war in the Gulf is tremendous both in terms of lives and in terms of dollars. Better than we had feared, but still a tremendous cost. At bottom, that war has been caused by energy. Many other reasons, in addition to energy, have motivated us to go into Kuwait. But at bottom it is really what constitutes the third energy crisis. It is time for this country to act, to act comprehensively, to act effectively. The National Energy Security Act of 1991, introduced by Senator Wallop and I, is designed to do just that. It is a balanced energy act. That is, it balances on the one hand what is sometimes called the soft path-conservation, renewables, alternative energy-with production on the other hand. Politically and policy-wise, it would be impossible, in my view, to pass either a sole production bill, or a sole renewables and conservation bill. That is why this act is a balanced act designed to emphasize both conservation, renewables, and production. Energy efficiency, which we are dealing with today, is not a new idea. Energy conservation has helped the United States dramatically reduce its energy consumption. The Department of Energy estimates that gains in energy efficiency have enabled the U.S. economy to grow by 46 percent since 1973, while increasing energy requirements by only 7 percent. Despite the establishment and success of many conservation programs, the 1980's saw a general decline in Federal support, and in some cases, total neglect of these initiatives. The National Energy Security Act will provide the Secretary of Energy with considerable financial resources in the form of revenues from ANWR to reinvig (1) orated underfunded efficiency and renewable programs, strengthen existing programs, and initiate new programs in critical energy use sectors of the economy. Title III of the bill encompasses a variety of regulatory and financial measures aimed at increasing energy efficiency in the residential, commercial, and industrial sectors of the economy. Many of the bill's provisions are aimed at amending existing law in order to either revive current programs or encourage the expansion of programs that are too narrow in focus. Examples of these programs include: appliance standards, commercial and residential building standards, and the Federal Energy Management Program. The Johnston-Wallop legislation recognizes the complex problem of integrating the various roles that Federal and State governments, utilities, and the private sector must play in the development and execution of the energy efficiency and renewable-energy programs. Title IV of the National Energy Security Act builds on last year's Renewable Energy and Energy Efficiency Technology Competitiveness Act by continuing research, development, and demonstration of renewable energy technologies in order to overcome the barriers that have prevented widespread commercialization. In addition, title IV strengthens the mandate of the interagency committee on Renewable Energy Commerce and Trade, which goes by the pseudonym CORECT, which promotes the adoption of commercially viable renewable energy technologies in lesser developed countries. I applaud the administration for its decision to increase funding for energy efficiency and renewable energy research and development. I am also pleased that the NES has identified many areas where energy efficiency and renewable energy policies can be strengthened. However, I feel that opportunities exist to enhance the proposal set forth in the President's strategy. It is important to note that this committee is in a unique position to play a leading role in the development of a national energy strategy that meets our Nation's energy, environmental, and economic challenges. I believe that titles III and IV of the committee package builds successfully on our past legislative achievements in developing cost-effective energy efficiency and renewable energy programs, while addressing future challenges. Today's witnesses have had extensive experience in the fields of energy efficiency and renewable energy at the Federal and State level within regulatory commissions, utilities, and the private sector. I urge today's witnesses to draw on this experience in providing a frank critique of our bill. We need to know how the bill can be strengthened and where additional programs may be justified in order to achieve the benefits of greater efficiency and use of renewable energy. We intend to be bold in this energy legislation. The committee looks forward to bold suggestions from all of our witnesses. Before we begin with the first panel, I would like to call on the distinguished Ranking Minority Member, Senator Wallop. [The text of title III and subtitles A and B of title IV of S. 341 and a statement of Senator Bingaman follow:] To reduce the Nation's dependence on imported oil, to provide for the energy security of the Nation and for other purposes. II IN THE SENATE OF THE UNITED STATES FEBRUARY 5 (legislative day, JANUARY 3), 1991 Mr. JOHNSTON (for himself and Mr. WALLOP) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To reduce the Nation's dependence on imported oil, to provide for the energy security of the Nation and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be referred to as the "National Energy 4 Security Act of 1991". |