Table Of ContentTHE DEPARTMENT OF ENERGY'S HSCAL YEAR
1997 BUDGET REQUESTS FOR ENERGY EFH-
CIENCY AND RENEWABLE ENERGY AND
FOSSIL
ENERGY PROGRAMS
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BEFORE THE
SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
OF THE
COMMITTEE ON SCIENCE
U.S. HOUSE OP REPRESENTATIVES
ONE HUNDRED FOURTH CONGRESS
SECOND SESSION
APRIL 17, 1996
[No. 71]
Printed for the use of the Committee on Science
*«^>,
THE DEPARTMENT OF ENERGY'S RSCAL YEAR
1997 BUDGET REQUESTS FOR ENERGY EFFI-
CIENCY AND RENEWABLE ENERGY AND FOSSIL
ENERGY PROGRAMS
HEARING
BEFORE THE
SUBCOMMITTEE ON ENERGY AND ENVIRONMENT
OF THE
COMMITTEE ON SCIENCE
HOUSE OF REPRESENTATIVES
U.S.
ONE HUNDRED FOURTH CONGRESS
SECOND SESSION
APRIL 17, 1996
[No. 71]
Printed for the use of the Committee on Science
U.S. GOVERNMENT PRINTING OFFICE
27-363CC WASHINGTON : 1997
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-054120-4
COMMITTEE ON SCIENCE
ROBERT S. WALKER, Pennsylvania, Chairman
F. JAMES SENSENBRENNER, Jr., GEORGE E. BROWN, Jr., California RMM*
Wisconsin HAROLD L. VOLKMER, Missouri
SHERWOOD L. BOEHLERT, New York RALPH M. HALL, Texas
HARRIS W. FAWELL, Illinois BART GORDON, Tennessee
CONSTANCE A. MORELLA, Maryland JAMES A. TRAFICANT, Jr., Ohio
CURT WELDON, Pennsylvania JOHN S. TANNER, Tennessee
DANA ROHRABACHER, California TIM ROEMER, Indiana
STEVEN H. SCHIFF, New Mexico ROBERT E. (Bud) CRAMER, Jr., Alabama
JOE BARTON, Texas JAMES A. BARCIA, Michigan
KEN CALVERT, California PAUL McHALE, Pennsylvania
BILL BAKER, California JANE HARMAN, CaUfomia
ROSCOE G. BARTLETT, Maryland EDDIE BERNICE JOHNSON, Texas
VERNON J. EHLERS, Michigan** DAVID MINGE, Minnesota
ZACH WAMP, Tennessee JOHN W. OLVER, Massachusetts
DAVE WELDON, Florida ALCEE L. HASTINGS, Florida
LINDSEY 0. GRAHAM, South Carolina LYNN N. RIVERS, Michigan
MATT SALMON, Arizona KAREN McCarthy, Missouri
THOMAS M. DAVIS, Virginia MIKE WARD, Kentucky
STEVE STOCKMAN, Texas ZOE LOFGREN, CaUfomia
GIL GUTKNECHT, Minnesota LLOYD DOGGETT, Texas
ANDREA H. SEASTRAND, CaUfomia MICHAEL F. DOYLE, Pennsylvania
TODD TIAHRT, Kansas SHEILA JACKSON LEE, Texas
STEVE LARGENT, Oklahoma WILLIAM P. LUTHER, Minnesota
VAN HILLEARY, Tennessee
BARBARA CUBIN, Wyoming
MARK ADAM FOLEY, Florida
SUE MYRICK, North CaroUna
David D. Clement, ChiefofStaffand ChiefCounsel
Barry Beringer, General Counsel
TiSH Schwartz, ChiefClerk andAdministrator
Robert E. Palmer, Democratic StaffDirector
Subcommittee on Energy and Environment
DANA ROHRABACHER, CaUfomia, Chairman
HARRIS W. FAWELL, Illinois TIM ROEMER, Indiana
CURT WELDON, Pennsylvania DAVID MINGE, Minnesota
ROSCOE G. BARTLETT, Maryland JOHN W. OLVER, Massachusetts
ZACH WAMP, Tennessee MIKE WARD, Kentucky
LINDSEY 0. GRAHAM, South CaroUna MICHAEL F. DOYLE, Pennsylvania
MATT SALMON, Arizona JAMES A. BARCIA, Michigan
THOMAS M. DAVIS, Virginia PAUL McHALE, Pennsylvania
STEVE LARGENT, Oklahoma EDDIE BERNICE JOHNSON, Texas
BARBARA CUBIN, Wyoming LYNN N. RIVERS, Michigan
MARK ADAM FOLEY, Florida KAREN McCarthy, Missouri
STEVEN H. SCHIFF, New Mexico HAROLD L. VOLKMER, Missouri
BILL BAKER, California SHEILAJACKSON LEE, Texas
VERNON J. EHLERS, Michigan
STEVE STOCKMAN, Texas
•RankingMinorityMember
**Vice Chairman
(ID
CONTENTS
WITNESSES
Page
April 17, 1996:
PANEL 1—ENERGY EFFICIENCY AND RENEWABLE ENERGY
Hon. Christine A. Ervin, Assistant Secretary for Energy Efficiency and
Renewable Energy, U.S. DepartmentofEnergy 6
Allen Li, Associate Director, Energy, Resources, and Science Issues, Re-
sources, Community, and Economic Development Division, U.S. Gen-
eralAccounting Office,Washington, DC 26
David M. Nemtzow, President, Alliance to Save Energy, Washington,
DC 40
Dr. Ronald L. McMahan, President and Founder, Resource Data Inter-
national, Inc., Boulder, Colorado 54
PANEL 2—FOSSIL ENERGY R&D AND CLEAN COAL TECHNOLOGY
Hon. Patricia Fry Godley, Assistant Secretary for Fossil Energy, U.S.
DepartmentofEnergy 109
Ralph DeGennaro, Executive Director, Taxpayers for Common $ense,
Washington, DC 136
John M. Rackley, Vice President, Research and Development, McDermott,
Inc/Babcock and Wilcox Company 142
David G. Tees, Vice President of Energy Production, Houston Lighting
and Power Company, Houston, Texas 152
APPENDICES
APPENDIX 1—ADDITIONAL STATEMENTS
Paul C. Liepe, Ph.D, Executive Director, Geothermal HeatPump Consortium 169
Mr. David M. Pellish, Program Manager (retired), Energy Metal Casting
Competitiveness Research Program, U.S. Department of Energy (1990-
1994) 184
Mr. Dean M. Peters, Editor, FOUNDRY Management & Technology, Co-
chairman, DOE Metal Casting IndustrialAdvisory Board 186
Dr. Harvey Forest, CEO, Photovoltaics,Amoco/Enron Solar 190
APPENDIX 2—ADDITIONAL MATERIAL FOR THE RECORD
Success Stories: The Energy Mission in the Marketplace, A Portfolio ofSuc-
cessful Investments in Applied Energy Research and Development by the
U.S. DepartmentofEnergy, OfficeofPolicy, U.S. DepartmentofEnergy 200
DOE 's Success Stories Report, letter report to the Chairman, House Commit-
tee onthe Budget(GAO/RCED-96-120R, April 15, 1996) 224
am
Page
Letter dated April 17, 1996, to the Hon. Charles Bowsher, Comptroller Gen-
eral of the United States, from the Hon. George E. Brown, Jr., Ranking
Democratic Member, Committee on Science, expressing concerns about the
April 15, 1996, General Accounting Office (GAG) letter report to the Chair-
man, House Committee on Budget, entitled DOE's Success Stories Report
(GAO/RCED-96-120R) 237
Letter dated May 13, 1996, entitled Success Stories Response (GAO/OCG-
96-3R) to the Hon. George E. Brown, Jr., Ranking Democratic Member,
Committee on Science, from J. Dexter Peach, Assistant Comptroller Gen-
eral for Planning and Reporting, U.S. General Accounting Office, in re-
sponse to Mr. Brown's April 17, 1996, letter expressing concerns about
the April 15, 1996, General Accounting Office (GAO) report to the Chair-
man, House Committee on Budget, entitled DOE's Success Stories Report
(GAO/RCED-96-120R) 241
Energy Choices in a Competitive Era: The Role ofRenewable and Traditional
Energy Resources inAmerica's Electric Generation Mix, prepared for Center
for Energy and Economic Development, by Resource Data International,
Inc.,April, 1995 249
APPENDIX 3—PREHEARING QUESTIONS AND ANSWERS FOR THE
RECORD
Hon. Christine A. Ervin, Assistant Secretary for Energy Efficiency and Re-
newable Energy, U.S. DepartmentofEnergy
OFFICE OF ENERGY EFFICIENCY AND RENEWABLE ENERGY
OVERVIEW
387
SOLARAND RENEWABLE RESOURCE TECHNOLOGIES 406
Solar Buildings Appliances R&D 410
Photovoltaic Energy Systems 434
SolarThermal Energy Systems 441
Biofuels Energy Systems 449
Wind Energy Systems 466
Renewable Energy Production Incentive Program 472
Resource Assessment 473
Solar and Renewable Energy Deployment 474
Geothermal 478
Hydrogen Research 482
Electric Energy Systems and Storage 484
National Renewable EnergyLaboratory 490
—
Program Direction EE 491
In-House Energy Management 492
ENERGY CONSERVATION R&D 495
Transportation Sector 495
Alternative Fueled Vehicles 499
Electric Drive Vehicle Technologies 514
Transportation MaterialsTechnologies 523
Combustion Engine R&D 530
Transportation SectorImplementation and Deployment 534
BuildingTechnology, State, and CommunitySectorProgram Mission 736
BuildingSystems Design 737
BuildingEquipment and Materials 775
Codes and Standards 831
Management and Planning 840
Federal Energy Management Program 841
Industry Sector Program Mission 849
Industries ofthe Future (Specific) 852
Industries ofthe Future (Crosscutting) 1003
Municipal Solid Waste 1010
Technology Access 1011
Managementand Planning 1253
—
Policy and Management EC 1253
(IV)
Page
Hon. Patricia Fry Godley, Assistant Secretary for Fossil Energy, U.S. Depart-
mentofEnergy
OFFICE OF FOSSIL ENERGYPROGRAM MISSION 1259
COAL: ADVANCED CLEANFUELS RESEARCH 1357
Coal Preparation 1359
Direct Liquefaction 1363
IndirectLiquefaction 1367
Advanced Research and Environmental Technology 1372
Systems for Coproducts 1373
COAL: ADVANCED CLEAN/EFFICIENTPOWERSYSTEMS 1374
Advanced Pulverized Coal-Fired Powerplant 1374
IndirectFired C—ycle 1379
High Efficiency—Integrated Gasification Combined Cycle 1383
High Efficiency Pressurized Fluidized Bed 1388
Advanced Research and EnvironmentalTechnology 1393
Kalina Cycle 1398
COAL: ADVANCED RESEARCH AND TECHNOLOGY DEVELOP-
MENT
1400
Coal Utilization Science 1400
Coal Technology Export 1403
BioprocessingofCoal 1404
University Coal Research 1405
Materials 1407
Components 1409
EnvironmentalActivities 1410
Technical and EconomicAnalysis 1412
International Program Support 1413
Instrumentation and Diagnosis 1414
University/National Laboratory Coal Research HBCUs, Education
and Training 1415
NATURAL GAS RESEARCH 1418
Exploration and Production 1418
Deliveryand Storage 1420
Advanced Turbine Systems 1421
Utilization 1424
Environmental Research/RegulatoryImpactAnalysis 1427
Fuel Cells 1429
Advanced Research 1429
;...
MoltenCarbonate Systems 1430
Advanced Concepts 1433
OILTECHNOLOGY ; 1435
Exploration and Production SupportingResearch 1435
Recovery Field Demonstrations 1440
Exploration and Production Experimental Research 1442
Processing Research and Downstream Operations 1444
PROGRAM DIRECTIONAND MANAGEMENT SUPPORT 1445
Headquarters Program Direction 1445
ETC Program Direction 1446
COOPERATIVE RESEARCHAND DEVELOPMENT 1449
FOSSIL ENERGYENVIRONMENTALRESTORATION 1450
CERCLA Remedial Actions 1450
RCRARemedial Actions 1453
OtherES&HActions 1454
Magnetohydrodynamics (MHD) Closeoutand CleanupActions 1455
FUELS PROGRAM 1456
MININGRESEARCHANDDEVELOPMENT 1457
Materials 1457
Health & Safety 1458
APPENDIX 4—FOLLOWUP QUESTIONS AND ANSWERS FOR THE RECORD
Allen Li, Associate Director, Energy, Resources, and Science Issues, Re-
sources, Community, and Economic Development Division, U.S. General
AccountingOffice 1459
Dr. Ronald L. McMahan, President and Founder, Resource Data Inter-
national, Inc 1464
Hon. Christine A. Ervin, Assistant Secretary for Energy Efficiency and Re-
newable Energy, U.S. DepartmentofEnergy 1492
(V)
THE DEPARTMENT OF ENERGY'S FISCAL
YEAR BUDGET REQUESTS FOR ENERGY
1997
EFFICIENCY AND RENEWABLE ENERGY AND
FOSSIL ENERGY PROGRAMS
WEDNESDAY, APRIL 17, 1996
U.S. House of Representatives,
Committee on Science,
Subcommittee on Energy and Environment,
Washington, D.C.
The Subcommittee met at 1:11 p.m. in room 2318 ofthe Raybum
House Office Building, the Honorable Dana Rohrabacher, Chair-
man ofthe Subcommittee, presiding.
Members present: Representatives Roemer, Ehlers, Doyle, Riv-
ers, McCarthy, Stockman, Largent, Fawell, Olver, Bartlett, Barcia,
Schiff, Brown, Wamp, Cubin, Davis and Volkmer.
Chairman RoHRABACHER. All right. This hearing of the Energy
and Environment Subcommittee will come to order.
This is the second hearing on the Department of Energy's Fiscal
Year 1997 budget request. It is the result, I might add, of the re-
quest of the distinguished Ranking Minority Member of the Sub-
committee to have another hearing, and this one focused on the re-
newable energy, energy efficiency and fossil energy programs.
As I pointed out at our March 21st hearing, we have been com-
pelled to limit our hearings, because the budget was submitted by
the President six weeks late. And, in the case of energy conserva-
tion, the President was seven weeks late.
The budget submissions ofthese two program offices are a study
in contrast. The Fossil Energy budget requests of $348.5 million
represents about a 17 percent reduction from current funding lev-
els.
Although this figure is higher than the authorizing levels passed
by the House in 1995, it reflects an effort to set priorities in light
ofbalanced budget realities. On the other hand, the Renewable En-
ergy budget request calls for a 35 percent increase primarily in
demonstration projects and market promotion activities.
For example, there is a 427 percent increase in the request for
a program that gives taxpayer money to utilities for installing more
expensive renewable energy projects. The same taxpayer is still
forced to pay the monthly utility bill, however.
Although listed imder Research and Development, it is neither.
It is a subsidy program, pure and simple.
The Administration is also requesting a 34 percent increase in
the Energy Conservation budget. This increase is primarily for sub-
CD
—
sidies of industrial corporations builders and the Big 3 auto-
makers.
Within those programs are some steirtling figures. A 507 percent
increase for the aluminum vision program. TTie glass vision pro-
gram would go up 271 percent. The metal casting program, 183
percent.
Some concerns have been expressed over where this money is
going. And, I have a written statement fi-om the former DOE Metal
Casting Program manager, who is too ill to testify today. And, I
will put the statement ofMr. Pellish into the record.
And, without objection, it will be submitted for the record.
He expresses in his letter concern that the program reorganiza-
tion has put ftinding authority in the hands of a small group of in-
dustry lobbyists who may well ignore small business within that
same industry. This is an inherent problem when government picks
winners and losers, because somebody is doing the picking and
somebody may pick people they know or people they have been as-
sociated with or people they have sort of a preconceived notion
might do a better job in order to receive limited taxpayer money.
That's perhaps one of the reasons the government shouldn't be
making those decisions. It's hard to understand why, knowing the
budget restrictions that we face, that the Department of Energy
would not want to set their own priorities and present a more real-
istic budget for those programs.
We will have the opportunity to explore these issues with our
witnesses. But, first, I will turn to my colleague fi-om Indiana, the
distinguished Ranking Minority Member, Mr. Roemer, for his open-
ing remarks.
Mr. Roemer. Thank you, Mr. Chairman. I, first of all, want to
thank you for the opportunity to follow up on these hearings.
We requested that we have more hearings specifically in this
area. You granted that request. And, we look forward to what we
then glean and learn from today's witnesses.
These are critical issues under the jurisdiction of this Sub-
committee. And, I am pleased that we are here to continue our
work in examining the Administration's plans for the Department
of Energy as it continues to refocus its mission, downsize its oper-
ations and enhance our country's ability to grow and compete in
the world market.
The Administration's budget makes some notable program
changes in the budget for energy efficiency and renewable energy;
all told, a 34.8 percent increase over the currently appropriated
R&D
total. There is also a 17.3 percent decrease in fossil energy
over current levels.
These changes reflect policy decisions that are of serious interest
to this Committee. And, I look forward to hearing the Administra-
tion witnesses explain how these decisions were made.
Energy policy is critical to the health and well being of our citi-
zens. It is also having great impact on our manufacturing sector
and has the potential to lend great support to our ability to en-
hance trade and exports.
The United States has sometimes lagged behind our trading
partners in energy efficiency, which is £in economic engine that we
