[Senate Hearing 108-422]
[From the U.S. Government Printing Office]
S. Hrg. 108-422
SUSAN JOHNSON GRANT NOMINATION
=======================================================================
HEARING
before the
COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
on the
NOMINATION OF SUSAN JOHNSON GRANT, NOMINEE TO BE CHIEF FINANCIAL
OFFICER OF THE DEPARTMENT OF ENERGY
__________
FEBRUARY 26, 2004
Printed for the use of the
Committee on Energy and Natural Resources
______
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COMMITTEE ON ENERGY AND NATURAL RESOURCES
PETE V. DOMENICI, New Mexico, Chairman
DON NICKLES, Oklahoma JEFF BINGAMAN, New Mexico
LARRY E. CRAIG, Idaho DANIEL K. AKAKA, Hawaii
BEN NIGHTHORSE CAMPBELL, Colorado BYRON L. DORGAN, North Dakota
CRAIG THOMAS, Wyoming BOB GRAHAM, Florida
LAMAR ALEXANDER, Tennessee RON WYDEN, Oregon
LISA MURKOWSKI, Alaska TIM JOHNSON, South Dakota
JAMES M. TALENT, Missouri MARY L. LANDRIEU, Louisiana
CONRAD BURNS, Montana EVAN BAYH, Indiana
GORDON SMITH, Oregon DIANNE FEINSTEIN, California
JIM BUNNING, Kentucky CHARLES E. SCHUMER, New York
JON KYL, Arizona MARIA CANTWELL, Washington
Alex Flint, Staff Director
Judith K. Pensabene, Chief Counsel
Robert M. Simon, Democratic Staff Director
Sam E. Fowler, Democratic Chief Counsel
C O N T E N T S
----------
STATEMENTS
Page
Domenici, Hon. Pete V., U.S. Senator from New Mexico............. 1
Grant, Susan Johnson, Nominee to be Chief Financial Officer,
Department of Energy........................................... 2
Thomas, Hon. Craig, U.S. Senator from Wyoming.................... 7
APPENDIX
Responses to additional questions................................ 9
SUSAN JOHNSON GRANT NOMINATION
----------
THURSDAY, FEBRUARY 26, 2004
U.S. Senate,
Committee on Energy and Natural Resources,
Washington, DC.
The committee met, pursuant to notice, at 2:30 p.m., in
room SD-366, Dirksen Senate Office Building, Hon. Pete V.
Domenici, chairman, presiding.
OPENING STATEMENT OF HON. PETE V. DOMENICI,
U.S. SENATOR FROM NEW MEXICO
The Chairman. I have just been informed the minority
member, Senator Bingaman, asks that I proceed on the basis that
he has already talked with you. So with that, we will get going
here.
The first thing I wanted to recognize is that you have--the
reason we have a crowd is because you have all your relatives
here. And so why do we not start with just asking them to stand
up? And I will just say that it is good that you have so many
wonderful relatives who would be supporting you. And you have
told me that your husband and your 84-year-old father are here.
Ms. Grant. Yes, sir.
The Chairman. And I am just going to say all of the rest of
you cannot be any closer than those two, so we are going to say
thanks to all of you through them for coming.
It is not going to take us long, and her desire that she
get this job--other things go slow once they get to the Senate,
Susan, which is not my doing.
[Laughter.]
The Chairman. Good afternoon and welcome for this hearing
where we are going to consider the nomination, your nomination
to be Chief Financial Officer for the Department of Energy. The
rules of the committee, which apply to all nominees requires
that they, one, be sworn in in connection with their testimony.
Please rise and raise your right hand.
Do you solemnly swear that the testimony you are about to
give to the Senate Committee on Energy and Natural Resources
shall be the truth, the whole truth and nothing but the truth?
Ms. Grant. I do.
The Chairman. Please be seated.
[Pause.]
The Chairman. Before we begin your statement, I will ask
you three questions that are addressed to each nominee before
this committee.
One, will you be available before the committee and other
congressional committees to represent the Department's position
and respond to issues of concern to the Congress?
Ms. Grant. I will.
The Chairman. Are you aware of any personal holdings,
investments, or interests that could constitute a conflict or
create the appearance of such a conflict should you be
confirmed and assume the office to which you are being
nominated by the President?
Ms. Grant. My investments, personal holdings and other
interests have been reviewed both by myself and the appropriate
ethics counselors within the Federal Government. I have taken
appropriate action to avoid any conflicts of interest. There
are no conflicts of interest or appearances thereof to my
knowledge.
The Chairman. Are you involved or do you have any assets
held in blind trust?
Ms. Grant. No.
The Chairman. Let me say that it is a challenge these days
to find qualified individuals who are willing to serve and
devote themselves to government service, so I want to thank you
for your long history of competent service to our government
and your willingness to accept this position at the Department.
I understand that you have--I was repeating your family.
That is already done.
[Laughter.]
The Chairman. I wanted to say to you before you give your
statement, which I hope is brief--and what you do not say we
will make a part of the record. I just want to tell you that I
have more than a bit of knowledge of the Department of Energy,
and it is a very, very tough department, very confusing and
very--there is no straight line to very many things. They curl
and go around the table and all kinds of funny things.
You have a very tough job catching on and getting it done,
but I think that if you are really as diligent and--that--as
diligent as you are committed, things will work out.
I want to indicate to you, as chairman of the committee, I
also happen to be chairman of the subcommittee which pays for
all of what you do, and I would be very glad to at any time you
would like to confer or discuss with you whatever you would
like.
With that, could you give us your opening statement?
Whatever you have ready will be made a part of the record, and
you take 5 minutes and give us your statement.
STATEMENT OF SUSAN JOHNSON GRANT, NOMINEE TO BE CHIEF FINANCIAL
OFFICER, DEPARTMENT OF ENERGY
Ms. Grant. Thank you, Mr. Chairman. Thank you for the
opportunity to appear before you today.
I am honored to be the President's nominee to be Chief
Financial Officer at the Department of Energy. And I have
submitted a formal statement, and I appreciate you including
that, sir. If I could, I would like to briefly summarize my
statement.
Before I begin, because it is extremely important to me to
have my family and friends here, I do want to recognize them
myself, as you have done, and I appreciate that, sir. My
strongest supporter and trusted partner is my husband, Douglas
Grant, a former Air Force Colonel, who served the Nation in
uniform for 24 years.
My anchor and my guide is my father, C.A. Johnson, a World
War II veteran, and my stepmother, Ann; my sage advisor, my
father-in-law, Edmund Grant, also a World War II Veteran and
his wife Marie; and my siblings, my brother, Charles Johnson
and wife, Betty; my sister, Faye Johnson; my sister, Brenda
Johnson King; my brother, Richard Johnson; my brother-in-law,
Jeffrey Grant, and rounding out the group--and my brother,
Richard Johnson. And rounding out the group are my Aunt Annette
and Uncle Billy Benefield and my good friends, Melody Robinson,
Hyesuk Bellino and Richard Aiken.
And, Mr. Chairman, you know it is family and friends that
keep us grounded and remind us what public service is all
about.
And good government is about what we do every day as
responsible stewards for the American taxpayer. Public service
is a trust. It is a calling that I take with utmost
seriousness. I believe it important to tell you a little bit
about myself, what I bring to the table, and what you as the
Department's oversight body can expect from me.
First, I have served the Nation as a public servant for
over 30 years in the Defense Department, from weapon system
development as a logistician, to manpower management as a
budget officer, to fiscal responsibility as the chief financial
officer in my present position at the Defense Finance and
Accounting Service. I am a responsible, fully accountable and
engaged manager and leader.
Second, growing up in the Defense Department brings with it
considerable rigor, structure and accountability. The resource
management process has at its very core a strict discipline,
where planning drives budget, which results in execution and
tracks back to planning. A disciplined review process
throughout the cycle ensures planning is focused on
quantifiable needs, and final budget decisions are focused on
maximizing mission accomplishment with minimum resources.
This process produces results. Using this rigor in the
Defense Finance and Accounting Service, we reduced our costs to
our military customers by over $250 million in the last two
fiscal years, while exceeding previous quality levels. I like
that discipline. It is a closed-loop system and ensures that
resources are tied to results. If confirmed, I would pursue a
similar disciplined approach for ensuring strategy drives
budget, is linked to execution, and is measured by results.
Third, I believe we should manage the Government more like
a business with an open book policy. There is room to adopt
solid financial business practices in all areas of government,
regardless of how efficient or effective we may believe our
operations to be.
Financial transactions result from business decisions, not
vice versa, and sound accounting principles dictate the
treatment of those transactions on the financial statements.
That is universal, or should be, and is what the Chief
Financial Officers Act of 1990 is all about in its move to
bring government accounting more in line with private sector
accounting.
I am proud to say that, under my leadership, the Defense
Finance and Accounting Service became the first operational
entity to receive an unqualified or clean opinion on its
financial statements. That means that our records conformed
with accounting principles generally accepted in the United
States, not just in government. And not only did we receive one
such opinion, we have now received four consecutive clean
opinions.
Equally important, the Department of Energy has received
clean opinions for the last 5 years. If I am confirmed, a top
priority of mine will be to ensure that this record of success
continues.
At the same time, it is important to keep in mind that
audits are a means to an end, and not an end unto themselves.
It is really about using quality information to improve the
decision making process. Successful businesses operations,
regardless of private or public sector focus, need forward-
looking information, or what I like to refer to as front
windshield versus rearview mirror snapshots.
So often our financial information is more akin to rearview
mirror data, telling us where we have been instead of what we
need to know about where we are going. Managers need
intelligence, business intelligence, not just more financial
data. If confirmed, I would work to provide the Department's
managers the information they need to make informed decisions,
providing better business intelligence for decision makers.
Fourth, I am a solid proponent of performance measurement
and, with that, you get the accountability in government we all
want. We all recognize you get what you measure, so identifying
the appropriate kinds of metrics is critical to successful
organizations.
I believe performance measurement success comes when an
organization moves from identifying inputs, raw materials, and
goes beyond outputs, producing widgets, to focusing on outcomes
or results.
At the Defense Finance and Accounting Service, through the
use of metrics, we cascaded the balanced scorecard throughout
the agency linking organizational and individual performance
plans to these measures. As a senior executive, my individual
performance evaluation is directly tied to my organization's
performance measures and, likewise, I link the individual
performance plans of my direct reports to their organizational
measures. This is performance accountability at work. If
confirmed, I would continue this pursuit for performance
measurement and accountability in government operations.
And finally, relationship management and the value of solid
working relationships built on mutual respect, confidence in
information sharing, and open communications. If I am
confirmed, I want to build on the relationship between the
Department's Chief Financial Officer and this committee and
other committees to pursue what is best for the Nation as a
whole. You can count on me to be open, honest, and forthright.
Mr. Chairman, I grew up on a farm in rural Georgia, a proud
daughter of C.A. Johnson. My father taught me many things. I
recall one very important piece of advice he gave me, and I
want to share it with you all in closing. He taught me while
there are many ways you can get your foot in the door, there's
only one way you can keep it there, and that is through your
skill, ability, and integrity. I come before you today, I
believe, well equipped for the task at hand.
If confirmed, I pledge to work with you to remain in the
door, just like my daddy taught me.
Mr. Chairman, this concludes my statement. Thank you for
your consideration of my nomination and the opportunity to
appear before you today. I would be pleased to respond to any
questions you all may have.
The Chairman. Thank you very much.
[The prepared statement of Ms. Grant follows:]
Prepared Statement of Susan Johnson Grant, Nominee To Be Chief
Financial Officer, Department of Energy
Chairman Domenici, Senator Bingaman, and distinguished Members of
the Committee, I am honored to appear before you today as President
Bush's nominee to be the Chief Financial Officer of the Department of
Energy. I am also extremely grateful for the confidence that Secretary
Abraham has placed in me.
Mr. Chairman, I would like to introduce my support group who has
accompanied me today, a select group of family members and special
friends. My most ardent supporter, valued friend, and trusted partner,
my husband, Douglas Grant, a former Air Force colonel. My father, C. A.
Johnson, a World War II Veteran hailing from the great state of Georgia
and my stepmother, Ann. My father-in-law, Edmund Grant, also a World
War II Veteran representing the state of Florida and his wife Marie.
And my siblings: my brother Charles Johnson and wife Betty; my sister
Faye Johnson; my sister Brenda Johnson King; and my brother Richard
Johnson. Each of them is also from Georgia with the exception of my
sister Faye who joins us from Nevada. I am also pleased to have my Aunt
Annette and Uncle Billy Benefield, also from Georgia, here and my good
friends, Melody Robinson, Hyesuk Bellino and Richard Aiken. I want to
thank all those assembled today as well as those family members and
friends unable to attend for their unending support.
I have served the Nation as a public servant for the past 30 years
and, if confirmed, I will continue to put the interests of the Nation
as my top priority. Public service is a trust, a calling that I take
with utmost seriousness. I believe it important to tell you a little
about myself, what I bring to the table, and what you as the
Department's oversight body can expect from me.
First, as you may be aware, my entire career has been in Defense
and it has been focused on one facet or another within the resource
management arena. From weapon system development as a logistician to
manpower management as a budget officer to fiscal responsibility as a
chief financial officer in my present position, I am a fully
accountable, responsible and engaged manager and leader. These
attributes are directly transferable to the Department of Energy.
Second, growing up in the Defense Department brings with it a
certain amount of rigor, structure and accountability. The resource
management and funds distribution process within Defense, what we refer
to as the Planning, Program, Budgeting and Execution System, has at its
very core a strict discipline. That discipline is founded in the need
for a viable strategic planning process driven by mission priorities,
integrated with resource allocation practices and linked to execution
in measurable ways, in other words planning drives budget which results
in execution and tracks back to a plan. A disciplined review process
throughout the cycle ensures planning is focused on quantifiable needs
and final budget decisions are focused on maximizing mission
accomplishment with minimum resources. It's the basic capability needs
assessment with gaps in performance levels defined, evaluated and
resource levels quantified for trade-off decisions. This process
produces results. Using this rigor in the Defense Finance and
Accounting Service, we reduced our costs to our military customers by
over $250 million in the last two fiscal years. I like that discipline
as it's a closed-loop system and ensures that resources are tied to
results. If confirmed, I would pursue a similar disciplined approach
for ensuring strategy drives budget, is linked to execution and
measured by results.
Third, I believe we should manage the government more like a
business with an open book policy. There is room to adopt solid
financial business practices in all areas of government operations,
regardless of how efficient or effective we may believe our operations
to be. The Chief Financial Officers Act of 1990 outlined certain
statutory responsibilities for the CFO. Prominent among them is the
preparation of an annual report that includes the Department's
financial statements and audit. Financial transactions result from
business decisions, not vice versa, and sound accounting principles
dictate the treatment of those transactions on the financial
statements. That's universal, or should be, and is what the CFO Act of
1990 is all about in its move to bring government accounting more in
line with private sector accounting.
I am proud to say that, under my leadership, the Defense Finance
and Accounting Service became the first operational entity in the
Defense Department to receive an unqualified or clean audit opinion on
its financial statements. This means that our records conformed with
accounting principles generally accepted in the U.S., not just in
government. Not only did we receive one such opinion, but we have now
received four consecutive clean audit opinions. These annual audits
were conducted by two different independent private sector audit firms
with the most recent audit occurring while we converted to a new
accounting system. Obtaining a clean opinion builds credibility with
organizational stakeholders and instills confidence in the fiscal
health upon which the organization rests. Equally important, the
Department of Energy has received clean opinions for the last five
years. If I am confirmed, a top priority of mine will be to ensure that
this noteworthy record of success continues.
At the same time, if confirmed, I would work to provide the
Department's managers the information they need to make informed
decisions, providing better business intelligence for decision-makers.
Audits are a means to an end, not an end unto themselves. It's really
about using quality information to improve the decision making process
and successful businesses need forward-looking information, or what I
like to refer to as ``front windshield'' versus ``rear view mirror''
snapshots. So often, our financial information has been more akin to
rear view mirror data, telling us where we've been instead of what we
need to know about where we're going. This analogy ties back to my
earlier remarks on the disciplined review process and the need for the
direct linkage between mission and budget priorities. Managers need
intelligence, business intelligence, not just more financial data. If
confirmed, this will continue to be a priority for me--to ensure that
financial data is turned into information to enable knowledge for sound
business decision making.
Fourth, I am a solid proponent of performance measurement and with
that you get the accountability in government we all want. We all
recognize you get what you measure, so identifying the appropriate
kinds of metrics is critical to successful organizations. Influencing
the right behavior through appropriate measurement programs is both
science and art. The science is embedded in understanding the business
side of the equation and the application of applicable measurement
techniques, such as six sigma. The art is resident in the cultural
aspects associated with change management, such as lean thinking that
focuses on customer value and the pursuit of perfection. I believe
performance measurement success comes when an organization moves from
identifying inputs (raw materials), and goes beyond outputs (producing
widgets) focusing on outcomes (results).
As the CFO for the Defense Finance and Accounting Service, I led
the initiative to implement a performance measurement program for the
finance and accounting function. We adopted a balanced scorecard
methodology to measure our progress in attaining our goals and
integrated this with a performance management process that aligns
employee performance standards with scorecard metrics. At the Defense
Finance and Accounting Service, through the use of metrics, we cascaded
the balanced scorecard throughout the Agency linking organizational and
individual performance plans to these measures. As a Senior Executive,
my individual performance evaluation is directly tied to my
organization's performance measures and, likewise, I link the
individual performance plans of my direct reports to their measures.
This is performance accountability at work. If confirmed, I would
continue this pursuit for performance measurement and accountability in
government operations.
Finally, I applaud the desire to continue developing a solid
working relationship between the Department's Chief Financial Officer
and the staff of this Committee and other Committees. These
relationships are built on mutual respect, confidence in information
sharing, and open communication. If I am confirmed, I want to build on
those relationships to pursue what's best for the Nation as a whole. As
a public servant, I will endeavor to ensure that the Congress gets the
information it wants when it wants it and that the information is
accurate and reliable. You can count on me to be open, honest, and
forthright.
I began my remarks stating my intent to tell you about me and the
take-aways I trust I have offered are:
I am a firm believer in ``business is business'' and
``financial management is financial management'' and sound
financial management transcends the business commodity, whether
it's private sector, Defense, or Energy.
Discipline, review and measurement, accountability and an
open book policy make strong partnerships.
Relationship management is all about communication and
trust.
I have delivered and, if confirmed, I will continue to do
so.
I grew up on a farm in rural Georgia, a proud daughter of C.A.
Johnson. My father taught me many things. I recall one very important
piece of advice he gave me and I want to share it with you all in
closing. He taught me that while there are many ways you can get your
foot in the door, there's only one way you can keep it there and that's
through your skill, ability, and integrity. I come before you today, I
believe, well equipped for the task ahead, and if confirmed, I pledge
to work with you to remain in the door.
Mr. Chairman and Members of the Committee, this concludes my
statement. Thank you for your consideration of my nomination and the
opportunity to appear before you today. I would be pleased to respond
to any questions you may have.
The Chairman. The Senator from Wyoming is here. Senator
Thomas, do you have any questions?
Senator Thomas. No, sir. I would like, if I might, just to
take--make a short statement, however.
The Chairman. Please do.
STATEMENT OF HON. CRAIG THOMAS, U.S. SENATOR
FROM WYOMING
Senator Thomas. We are glad to have you here. Certainly
your financial role will be very important, and I just wanted
to share with you some ideas that I hope that we can follow in
the Department of Energy. I think we have to have a policy. We
have a long ways to go to provide this country with the energy
that it needs, and we need to plan to do that.
For instance, in coal, we need the research so we can have
clean air, so we can use that fossil resource, which is our
largest supply. We need to look at the alternative uses, such
as the hydrogen that we are talking about doing. And in that
regard, of course, we are talking about the future gen
facility. And obviously, I would like to see them look at
Wyoming where the major coal is produced.
We need to take a look at our gas production. We can
produce more. We need more permitting and to be able to move it
there. We need to, I believe, begin to continue to have the
Federal research facilities, such as RMOTC in Wyoming that
does, for instance, now is working on sequestering
CO2. They were not even in the budget last year.
They are in this year, but we need to pursue those things.
So I guess all I am saying is: It seems to me one of the
responsibilities of the Department of Energy--and I am sure the
Secretary is working that way--is to begin to try and develop a
vision of where we need to go to deal with this question of
providing the energy this country needs over the 10, 15 years
in the future, and then to be able to set up a policy and see
that we are moving in that direction. And the things we decide
on intermediately will lead us to the goals that we have set.
So we look forward to working with you and trying to move in
that direction. And we are glad you are here.
Ms. Grant. Thank you, sir.
The Chairman. Thank you very much, Senator.
Your background and statement, as well as the information
you supplied in response to our committee questionnaire
demonstrates your considerable qualifications for this
position.
I do have a couple of questions related to associations
that you and your husband have with government contractors, and
your response to these would probably be best detailed in
writing. So I ask that you agree to respond promptly to the
written questions from me and other members following this
hearing. Those responses will become part of this record as if
they were given today.
Now, frankly, I know you will want to answer them, but if
you or anybody over at that agency you are going to work for
would have the fancy idea that you should not answer them, then
you understand it does not harm me; it just means you will not
be confirmed. So that would not be a very nice position, so I
hope you will answer them quickly.
Ms. Grant. Yes, sir.
The Chairman. They are pretty routine when we know what you
have done. We are not trying to pry or anything, so if you will
get them done quickly, you will get confirmed quickly.
Ms. Grant. Yes, sir.
The Chairman. And that means very quickly, so I call on you
to do that.
My observations have to do with the gigantic misnomer that
exists when we call your Department, ``The Department of
Energy.'' Everybody in the country, including the oldest
relative you have here, would--when you asked them ``What does
the Department of Energy do,'' he would say, ``Well, they
probably help the country produce energy.'' Well, just so you
will know, that is not what it is at all.
It controls the nuclear weapons of the country. It has very
little to do with the idea of being the Department of Energy,
does it? It controls all kinds of peripheral issues that have
little to do with energy. And over time, they have become part
of what you have to work with.
It will not be easy and it will not take just a few weeks.
And there are some experts around that have done the financing.
Do not hesitate to ask them. They have had a couple of pretty
good ones over the past decade, not very many, but a couple.
And you can ask us or you can find out who they are, if you
want to ask what the kind of skills are that you ought to
develop to do that job.
I know you are all here for this big event, and I do not
want to keep you any longer. I want to thank you, all of you,
for showing your--by coming, you show us that her relatives
think she is a great gal, a wonderful woman, and she ought to
get this job.
We have said ``okay'' to an awful lot of men and women that
could not muster up this many friends and relatives if we gave
them two different hearings in three days. They just do not
have them, but it is good that you have shown us that you do.
With that, awaiting your responses, which will be made a
part of this record, we stand in recess.
Ms. Grant. Thank you.
The Chairman. Thank you.
[Whereupon, at 2:50 p.m., the hearing was adjourned.]
APPENDIX
Responses to Additional Questions
----------
Department of Energy,
Office of Congressional and Intergovernmental Affairs,
Washington, DC, March 5, 2004.
Hon. Pete Domenici,
Chairman, Committee on Energy and Natural Resources, U.S. Senate,
Washington, DC.
Dear Mr. Chairman: Please find enclosed, responses to questions
from the Senate Energy and Natural Resources Committee for Ms. Susan
Johnson Grant, nominee to be Chief Financial Officer for the Department
of Energy.
If you have any questions or need further assistance, please do not
hesitate to contact me.
Sincerely,
Rick A. Dearborn,
Assistant Secretary.
[Enclosure]
Response to Question From Senator Domenici
Question. You have noted in your Committee questionnaire that your
spouse is an employee of a contractor who has considerable business
dealings with the Department of Energy. Please describe more
specifically your spouse's position, including the extent to which his
position may be associated with Department of Energy programs.
Answer. Mr. Douglas Grant is a Department Manager and Vice
President at SAIC. As a Department Manager, Mr. Grant oversees a 45-
person organization with annual revenues of less than $7 million. SAIC
is a company of over 42,000 employees with annual revenues over one
billion dollars. Assistant Vice President is the lowest officer title
in the company, followed by Vice President, Mr. Grant's title.
Assistant Vice President and Vice President titles are based upon
revenue levels managed. There are over 1,500 Assistant Vice Presidents
and Vice Presidents in the company. Corporate officer-ship, those
levels distinctly above Assistant Vice President and Vice President, is
comprised of over 500 senior managers spanning some 25 different levels
or categories.
All contract work under Mr. Grant's management supports the Air
Force, especially the Deputy Chief of Staff for Air and Space
Operations, Headquarters Air Force, located in the Pentagon. Mr. Grant
has no contracts with DOE, nor does he or anyone under his management
interface with any DOE organization in any advisory capacity.
______
Responses to Questions From Senator Schumer
Question. Ms. Grant, as the Department of Energy's Chief Financial
Officer, I understand that a large part of your duties would relate to
determining the proper sources and timing of funds to be reprogrammed
within the Department of Energy to ensure the most efficient and
effective execution of departmental programs. Could you please
elaborate on what criteria you intend to use in evaluating
reprogramming proposals?
Answer. As directed by Public Laws and Congressional Reports, the
Department will promptly inform the House and Senate Committees on
Appropriations and relevant Authorization Committees when a change in
program execution or funding is required during the fiscal year.
Reallocations of new or prior year budget authority or prior year
deobligations will be submitted to the Committees in writing and will
not be implemented prior to approval by the Committees on
Appropriations. Reprogramming requests will be considered when an
unforeseen situation arises, and then only if delay of the project or
activity until the next appropriations year would result in a
detrimental impact to a Departmental program or priority. In addition,
a reprogramming request may be provided to the Committees if a general
reduction or prior year balance reduction unduly impacts a specific
program, project or activity.
Reprogramming's would also be evaluated if the funding increase
results in a significant cost savings to a program or activity. If a
reprogramming intends to initiate new programs or to change program,
project, or activity allocations that were denied, limited, reduced or
increased by Congress, the Department would provide a proposal in
advance to the Committees that fully justifies and explains the
request.
Question. Currently, Congressional earmarks and other factors have
led to a drastic reduction in the Department of Energy's budget for
high temperature superconductivity (HTSC), which is a technology that
promises to have tremendously positive impacts on system reliability,
transmission capacity and the environment. The amount of funding
provided for the development of this technology in FY04 has been
reduced from approximately $48 million to less than $31 million. The
cuts being faced by the program could lead to severe erosion of the
knowledge base and infrastructure needed to bring this program to
fruition. Would you be willing work with the Committee to identify and
reprogram idle or low-priority funds that could be transferred to
restore the HTSC program budget?
Answer. I am willing to work with the Committees on the Office of
Electricity Transmission and Distribution's high temperature
superconductivity funding situation.