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Budget and Spending Concerns at Doe Hearing BUDGET AND SPENDING CONCERNS AT DOE HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION APRIL 18, 2012 Serial No. 112–137 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 78–727 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 14:05 Feb 12, 2013 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\11425C~1\112-13~1 WAYNE COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, JR., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DEGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio JOHN BARROW, Georgia CATHY MCMORRIS RODGERS, Washington DORIS O. MATSUI, California GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin Islands LEONARD LANCE, New Jersey KATHY CASTOR, Florida BILL CASSIDY, Louisiana JOHN P. SARBANES, Maryland BRETT GUTHRIE, Kentucky PETE OLSON, Texas DAVID B. MCKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS CLIFF STEARNS, Florida Chairman LEE TERRY, Nebraska DIANA DEGETTE, Colorado SUE WILKINS MYRICK, North Carolina Ranking Member JOHN SULLIVAN, Oklahoma JANICE D. SCHAKOWSKY, Illinois TIM MURPHY, Pennsylvania MIKE ROSS, Arkansas MICHAEL C. BURGESS, Texas KATHY CASTOR, Florida MARSHA BLACKBURN, Tennessee EDWARD J. MARKEY, Massachusetts BRIAN P. BILBRAY, California GENE GREEN, Texas PHIL GINGREY, Georgia CHARLES A. GONZALEZ, Texas STEVE SCALISE, Louisiana DONNA M. CHRISTENSEN, Virgin Islands CORY GARDNER, Colorado JOHN D. DINGELL, Michigan H. MORGAN GRIFFITH, Virginia HENRY A. WAXMAN, California (ex officio) JOE BARTON, Texas FRED UPTON, Michigan (ex officio) (II) VerDate Aug 31 2005 14:05 Feb 12, 2013 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 F:\11425C~1\112-13~1 WAYNE CONTENTS Page Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 3 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement ............................................................................. 7 Hon. Joe Barton, a Representative in Congress from the State of Texas, opening statement ................................................................................................ 8 Prepared statement .......................................................................................... 10 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 12 Hon. Diana DeGette, a Representative in Congress from the State of Colo- rado, opening statement ...................................................................................... 12 Hon. Donna M. Christensen, a Representative in Congress from the Virgin Islands, opening statement ................................................................................. 13 WITNESSES Franklin Rusco, Director, Natural Resources and Environment, Government Accountability Office ............................................................................................ 14 Prepared statement .......................................................................................... 17 Answers to submitted questions ...................................................................... 119 Gregory H. Friedman, Inspector General, Department of Energy ...................... 39 Prepared statement .......................................................................................... 41 Christopher Johns, Director, Office of Budget, Department of Energy .............. 59 Prepared statement .......................................................................................... 61 Insert for the record ......................................................................................... 75 Answers to submitted questions ...................................................................... 122 SUBMITTED MATERIAL Executive Order 13589, dated November 9, 2011, Federal Register, November 15, 2011, submitted by Mr. Stearns ................................................................... 90 Article, dated April 13, 2012, ’’Analysis: Obama’s ‘green jobs’ have been slow to sprout,’’ Reuters.com, submitted by Mr. Stearns .......................................... 92 Supplemental Memorandum, dated April 18, 2012, ‘‘Supplemental Informa- tion on the House Republican Budget’s Cuts to DOE Clean Energy Pro- grams,’’ from Mr. Waxman and Ms. DeGette to subcommittee members, submitted by Mr. Waxman .................................................................................. 96 Report, dated January 31, 2012, ‘‘Report of the Independent Consultant’s Review with Respect to the Department of Energy Loan and Loan Guar- antee Program, submitted by Mr. Stearns 1 ...................................................... 111 Letter, dated April 27, 2012, from Mr. Johns to Mr. Stearns, submitted by Mr. Stearns ...................................................................................................... 114 1 The information is available at http://www.whitehouse.gov/sites/default/files/ docs/reportlonldoelloanlandlguaranteelportfolio.pdf. (III) VerDate Aug 31 2005 14:05 Feb 12, 2013 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\11425C~1\112-13~1 WAYNE VerDate Aug 31 2005 14:05 Feb 12, 2013 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\11425C~1\112-13~1 WAYNE BUDGET AND SPENDING CONCERNS AT DOE WEDNESDAY, APRIL 18, 2012 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 10:40 a.m., in room 2322 of the Rayburn House Office Building, Hon. Cliff Stearns (chairman of the subcommittee) presiding. Members present: Representatives Stearns, Blackburn, Bilbray, Scalise, Griffith, Barton, DeGette, Castor, Christensen, and Wax- man (ex officio). Staff present: Carl Anderson, Counsel, Oversight; Sean Bonyun, Deputy Communications Director; Andy Duberstein, Deputy Press Secretary; Todd Harrison, Chief Counsel, Oversight and Investiga- tions; Krista Rosenthall, Counsel to Chairman Emeritus; Alan Slobodin, Deputy Chief Counsel, Oversight; Samuel Spector, Coun- sel, Oversight; Roger Stoltz, Government Accountability Office Detailee, Oversight; and Alex Yergin, Legislative Clerk; Kiren Gopal, Democratic Counsel. OPENING STATEMENT OF HON. CLIFF STEARNS, A REP- RESENTATIVE IN CONGRESS FROM THE STATE OF FLORIDA Mr. STEARNS. Today, we will examine the adequacy of the De- partment of Energy’s implementation of the President’s promise to conduct a ‘‘line-by-line’’ review of the Federal budget. At this time of financial distress, the goal of this pledge must be to eliminate unnecessary, duplicative, or wasteful government programs to cut costs and do more with less. This hearing aims to determine the results of the DOE’s efforts to cut spending and to help DOE find more spending cuts and savings. Over the past year and a half, this Subcommittee has conducted rigorous oversight of the programs administered by DOE, including those that received a boost in funding under the Recovery Act. From the Solyndra debacle and the Loan Guarantee Program to DOE’s role in the Section 1603 program, this Subcommittee has been seeking transparency and accountability in DOE’s Recovery Act spending. The American people feel the pain at the pump, as I am sure many members are hearing directly from their constituents every day. The average national price of gasoline—regular gasoline—is nearly $4. Compounding this pain, DOE, the custodian of literally billions of dollars in Recovery Act funding, has all too often taken its eye off job creation, drawn instead to high risk ventures with (1) VerDate Aug 31 2005 14:05 Feb 12, 2013 Jkt 037690 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\11425C~1\112-13~1 WAYNE 2 known questions over commercial viability. Rather than gambling in the casino of risky green energy investments, DOE should be using taxpayers’ dollars prudently to help get Americans back to work, while assuring them
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