Hill Heat

In today’s hearing in the new Finance Subcommittee on Energy, Natural Resources, and Infrastructure, we look forward to hearing testimony on advanced technology vehicles. As we discuss energy policy and the most efficient path toward energy security and independence, we naturally turn to the issue of transportation fuels.

Right now, over 50% of the nearly 21 million barrels of oil we use each day in the U.S. is imported. And almost 70% of that oil consumption is used in the transportation sector. In 2007, we expect American to use over 14 millions barrels of oil to drive to work and do their chores, to travel within their communities, and to travel on vacation. We will also use over 4 million barrels of fuel on industrial transportation. Ten million gallons of that fuel will be imported.

These numbers suggest that in order to achieve energy security, we need to reduce our use of imported fuels. We can begin this effort by becoming efficient users of transportation fuels.

In our tax code, we have several incentives aimed at encouraging manufacturers and consumers across many industries to build and purchase more fuel efficient vehicles. We have tax credits for the purchase of vehicles featuring technologies that greatly increase their fuel economies. And we have tax penalties that apply to the purchase of the least fuel efficient vehicles. The tax code also features credits, against income or excise tax, for bio-based fuel blends that displace imported fuels.

And while we pursue energy security, we are always mindful of environmental concerns. Our vehicle tax credits have minimum emissions standards. And our alternative fuels credits are intended to encourage clean burning fuels.

We hope during this hearing to establish a record regarding the response of the market in general, and of vehicle manufacturers in particular, to the current tax incentives for efficient and clean vehicles. And as always, we are interested in hearing testimony on new incentives that might be more effective in helping us achieve our energy policy goals with respect to transportation fuel usage.

In particular, we sought testimony from:

• Manufacturers who employ cutting edge power storage technologies;
• Manufacturers who are active in the traditional and diesel markets;
• Producers of alternative transportation fuel who can speak to fueling station needs, and
• Scholars from the automotive industry who have long studied the response of the industry to Federal energy policies.

Witnesses

• Mark Chernoby, Vice President, Advance Vehicle Engineering, DaimlerChrysler Corporation
• David Vieau, CEO, A123Systems
• Martin Eberhard, CEO, Tesla Motors
• Dr. Walter McManus, University of Michigan, Transportation Research Institute
• Phillip Baxley, President, Shell Hydrogen, LLC

The House Natural Resources Committee, Subcommittee on Fisheries, Wildlife and Oceans, led by Del. Madeleine Z. Bordallo (D-GU), will hold an oversight hearing entitled, “Gone with the Wind: Impacts of Wind Turbines on Birds and Bats.” Witnesses: Panel 1 Honorable Alan B. Mollohan, Member of Congress

Panel 2 Mr. Dale Hall, Director, U.S. Fish and Wildlife Service Mr. Edward B. Arnett, Conservation Scientist, Bat Conservation International Dr. Michael Fry, Ph.D., Director, Birds and Pesticides, American Bird Conservancy Mr. Eric R. Glitzenstein, Partner, Meyer Glitzenstein and Crystal Mr. Michael Daulton, Director of Conservation Policy, National Audubon Society

Committee page.

H.R. 364 establishes an Advanced Research Projects Agency for Energy (ARPA-E) within the U.S. Department of Energy, similar to the successful DARPA program within the Department of Defense. With a lean and agile organization ARPA-E will assemble cross-disciplinary research teams focused on addressing the nation’s most urgent energy needs through high-risk research and the rapid development of transformational clean energy technologies. By leveraging talent in all sectors – from private industry, to universities, to government labs – ARPA-E will foster a robust and cohesive community of energy researchers and technology developers in the U.S. This bill follows on the direct recommendations of the National Academy of Sciences’ report “Rising Above the Gathering Storm.”

Witnesses

• Dr. Stephen R. Forrest
• Mr. John Denniston
• Mr. William B. Bonvillian
• Dr. Richard Van Atta

The House Natural Resources Committee, Subcommittee on Water and Power, led by Rep. Grace F. Napolitano (D-CA), will hold a legislative hearing on H.R. 1462, the “Platte River Recovery Implementation Program and Pathfinder Modification Authorization Act.” Witnesses: Panel 1 Jason Peltier, Deputy Assistant Secretary for Water and Science, Bureau of Reclamation, Washington, D.C.

• Mr. Peltier will be accompanied by Mark Butler of the Fish and Wildlife Service, and the Bureau of Reclamation’s Great Plains Regional Director, Mike Ryan

Panel 2 Alan Berryman, Assistant General Manager, Engineering Division Northern Colorado, Water Conservancy District, Berthoud, Colorado Ann Bleed, Executive Director, Nebraska Department of Natural Resources, Lincoln, Nebraska Ted Kowalski, Program Manager, Colorado Water Conservation Board, Denver, Colorado Dan Luecke, Platte River Issues Consultant to the National Wildlife Federation, Boulder, Colorado Mike Purcell, Director, Wyoming Water Development Commission, and Chairman of the Governance Committee, Cheyenne, Wyoming

Subcommittee hearing.

Witnesses:

Panel I

• Daniel Wenk, Deputy Director, National Park Service

Panel II

• Timmy Kerner, Mayor, Laffitte, LA
• Kim Burdick, National Chairman, National Washington-Rochambeau Revolutionary Route Association
• Linda Borkow, Dobbs Ferry Historical Society
• Gary Werner, Executive Director, Partnership for the National Trail System
• James Brown, Washington Office Director, City of St. Louis
• General Carl Reddel, Executive Director, Eisenhower Memorial Commission

The Subcommittee will consider different clean coal technologies available today, including carbon capture and sequestration, and in the near-term, that can help reduce carbon dioxide emissions from coal-fired power plants.

Witnesses:

• Joseph Chaisson, Director of Research and Technology, Clean Air Task Force
• Roberto R. Denis, Senior Vice President, Sierra Pacific Resources
• Michael W. Rencheck, Senior Vice President for Engineering, Projects, and Field Services, American Electric Power
• Dr. Gregory J. McRae, Hoyt C. Hottel Professor of Chemical Engineering, Massachusetts Institute of Technology
• John M. Wilson, Chief Operating Office for the Environmental Systems and Services Group, Siemens Corporation

Opening statement from Sen. Jeff Bingaman (D-N.M.): In today’s hearing in the new Finance Subcommittee on Energy, Natural Resources, and Infrastructure, we look forward to hearing testimony on advanced coal technologies. As we discuss energy policy and how to best use coal, a natural resource that we have in abundance, to enhance our energy security, it is important that we learn more about the feasibility of various advanced clean coal technologies that feature clean emissions and allow carbon sequestration and storage.

In our current tax code, we have several tax incentives for these technologies, including investment tax credits for investments in advanced coal technologies and accelerated depreciation to address the capital costs involved in these technologies. We hope during this hearing to collect testimony regarding the response of the market in general, and of coal producers and utilities in particular, to these incentives. We are also interested in hearing your views on new incentives that might be more effective in helping us achieve our energy policy goals. In particular, we sought testimony from experts on:

• Clean coal and gasification projects, including the newly announced Wyoming Coal Gasification Project, a private-public partnership formed to develop an integrated gasification combined cycle (IGCC) power plant.
• Coal to liquids, the process of making liquid fuels from coal
• Refined coal production tax credits
• The costs of establishing new facilities as well as retrofitting existing coal-fired power plants.

We also look forward to hearing these experts’ views on the feasibility and future of carbon capture and sequestration as well as the market for sequestered carbon. Sequestered carbon can be used in many useful technologies, including enhanced oil recovery. A primary focus of energy policy discussions is the abundance of coal in the U.S. This hearing represents our first examination of the possibilities of that endowment.

Witnesses

• Steve Waddington, Executive Director, Wyoming Infrastructure Authority
• Dr. Nina French, ADA-ES, Director, Clean Coal Combustion
• John Diesch, President, Rentech Energy Midwest Corporation
• Dr. Brian McPherson, Research Scientist, Petroleum Recovery Research Center, NM Tech and Manager, Carbon Engineering Group Energy and Geoscience Institute, University of Utah
• Bill Townsend, CEO, Blue Source

The House Natural Resources Committee, Subcommittee on National Parks, Forests and Public Lands, led by Rep. Raúl Grijalva (D-AZ), and Subcommittee on Energy and Mineral Resources, led by Rep. Jim Costa (D-CA), will hold a joint oversight hearing on “Land-Use Issues Associated with Onshore Oil and Gas Leasing Development.” Witnesses: Panel 1 Henri Bisson, Deputy Director, Bureau of Land Management, Department of the Interior Tony L. Ferguson, Director, Minerals and Geology Management, Forest Service, Department of Agriculture

Panel 2 John Emmerich, Deputy Director, Wyoming Game and Fish Department Jewell James, Member, Lummi Nation Honorable Maxine Natchees, Chairwoman, Northern Ute Tribe

Panel 3 Steve Adami, Powder River Basin Resource Council Ashley Korenblat, Owner, Western Spirit Cycling Claire M. Moseley, Executive Director, Public Lands Advocacy Roger Muggli, Northern Plains Resource Council Peggy Utesch, Western Organization of Resource Councils & Western Colorado Congress

Hearing.

Witnesses:

• Allen Biaggi, Director, Department of Conservation and Natural Resources, State of Nevada
• Kyle Prior, Chairman, Shoshone-Paiute Tribes, Duck Valley Reservation
• W. Patrick Ragsdale, Director, Bureau of Indian Affairs
• Harry Reid, U.S. Senator from Nevada