[Senate Hearing 114-369] [From the U.S. Government Publishing Office] S. Hrg. 114-369 PENDING NOMINATIONS OF SARRI, KIMBALL, KENDALL, WASSMER, MURRAY AND KOTEK ======================================================================= HEARING BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION ON THE NOMINATIONS OF KRISTEN JOAN SARRI, TO BE AN ASSISTANT SECRETARY OF THE INTERIOR (POLICY, MANAGEMENT AND BUDGET); DR. SUZETTE M. KIMBALL, TO BE DIRECTOR OF THE UNITED STATES GEOLOGICAL SURVEY; MARY L. KENDALL, TO BE INSPECTOR GENERAL AT THE DEPARTMENT OF THE INTERIOR; VICTORIA MARIE BAECHER WASSMER, TO BE UNDER SECRETARY OF ENERGY; DR. CHERRY ANN MURRAY, TO BE DIRECTOR OF THE OFFICE OF SCIENCE AT THE DEPARTMENT OF ENERGY; AND JOHN FRANCIS KOTEK, TO BE AN ASSISTANT SECRETARY OF ENERGY (NUCLEAR ENERGY) __________ OCTOBER 20, 2015 __________ [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Printed for the use of the Committee on Energy and Natural Resources Available via the World Wide Web: http://www.fdsys.gov ______ U.S. GOVERNMENT PUBLISHING OFFICE 98-943 WASHINGTON : 2017 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing 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 COMMITTEE ON ENERGY AND NATURAL RESOURCES LISA MURKOWSKI, Alaska, Chairman JOHN BARRASSO, Wyoming MARIA CANTWELL, Washington JAMES E. RISCH, Idaho RON WYDEN, Oregon MIKE LEE, Utah BERNARD SANDERS, Vermont JEFF FLAKE, Arizona DEBBIE STABENOW, Michigan STEVE DAINES, Montana AL FRANKEN, Minnesota BILL CASSIDY, Louisiana JOE MANCHIN III, West Virginia CORY GARDNER, Colorado MARTIN HEINRICH, New Mexico ROB PORTMAN, Ohio MAZIE K. HIRONO, Hawaii JOHN HOEVEN, North Dakota ANGUS S. KING, JR., Maine LAMAR ALEXANDER, Tennessee ELIZABETH WARREN, Massachusetts SHELLEY MOORE CAPITO, West Virginia KAREN K. BILLUPS, Staff Director PATRICK J. McCORMICK III, Chief Counsel ANGELA BECKER-DIPPMANN, Democratic Staff Director SAM E. FOWLER, Democratic Chief Counsel C O N T E N T S ---------- OPENING STATEMENTS Page Murkowski, Hon. Lisa, Chairman, and a U.S. Senator from Alaska... 1 Reed, Hon. Jack, a U.S. Senator from Rhode Island................ 3 Cantwell, Hon. Maria, Ranking Member, and a U.S. Senator from Washington..................................................... 4 Capito, Hon. Shelley Moore, a U.S. Senator from West Virginia.... 5 Manchin III, Hon. Joe, a U.S. Senator from West Virginia......... 5 WITNESSES Sarri, Kristen Joan, to be an Assistant Secretary of the Interior (Policy, Management and Budget)................................ 7 Kimball, Dr. Suzette M., to be Director of the United States Geological Survey.............................................. 13 Kendall, Mary L, to be Inspector General at the Department of the Interior....................................................... 20 Wassmer, Victoria Marie Baecher, to be Under Secretary of Energy. 30 Murray, Dr. Cherry Ann, to be Director of the Office of Science at the Department of Energy.................................... 34 Kotek, John Francis, to be an Assistant Secretary of Energy (Nuclear Energy)............................................... 39 ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED Cantwell, Hon. Maria: Opening Statement............................................ 4 Capito, Hon. Shelley Moore: Opening Statement............................................ 5 Kendall, Mary L.: Opening Statement............................................ 20 Written Testimony............................................ 22 Responses to Questions for the Record........................ 150 Kimball, Dr. Suzette M.: Opening Statement............................................ 13 Written Testimony............................................ 15 Responses to Questions for the Record........................ 129 Kotek, John Francis: Opening Statement............................................ 39 Written Testimony............................................ 41 Responses to Questions for the Record........................ 217 Manchin III, Hon. Joe: Opening Statement............................................ 5 Murkowski, Hon. Lisa: Opening Statement............................................ 1 Murray, Dr. Cherry Ann: Opening Statement............................................ 34 Written Testimony............................................ 36 Responses to Questions for the Record........................ 205 Reed, Hon. Jack: Opening Statement............................................ 3 Sarri, Kristen Joan: Opening Statement............................................ 7 Written Testimony............................................ 10 Responses to Questions for the Record........................ 79 Vitter, Hon. David: Letter for the Record........................................ 48 Wassmer, Victoria Marie Baecher: Opening Statement............................................ 30 Written Testimony............................................ 32 Responses to Questions for the Record........................ 193 Wyden, Hon. Ron: Letter for the Record........................................ 227 PENDING NOMINATIONS OF SARRI, KIMBALL, KENDALL, WASSMER, MURRAY AND KOTEK ---------- Tuesday, October 20, 2015 U.S. Senate Committee on Energy and Natural Resources Washington, DC. The Committee met, pursuant to notice, at 10:08 a.m. in Room SD-366, Dirksen Senate Office Building, Hon. Lisa Murkowski, Chairman of the Committee, presiding. OPENING STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR FROM ALASKA The Chairman. Good morning. The Committee will come to order. We are here this morning to consider a total of six nominations before the Committee, three for each of the Departments that are under our jurisdiction. For the Department of Energy we have Dr. Cherry Murray to be the Director of Office of Science, Ms. Victoria Wassmer to be the Under Secretary of Energy, and Mr. John Kotek to be the Assistant Secretary for Nuclear Energy. For the Department of the Interior we have Ms. Mary Kendall to be Inspector General (IG), Dr. Suzette Kimball to be Director of the U.S. Geological Survey (USGS), and Ms. Kristen Sarri to be the Assistant Secretary for Policy, Management and Budget. I have said before this Committee that Secretary Moniz, in my opinion, is doing a good job at the Department of Energy. I do not necessarily agree with everything, but he works with us. He listens to us, and I think that he deserves to have a team in place to support him. Unfortunately, I am not able to say the same when it comes to the Secretary of the Department of the Interior. Instead, the Interior Department's record has been very frustrating, particularly if you are an Alaskan. We are seeing decisions out of the Department of the Interior that are really destroying our hope to be independent as a state. Ms. Sarri, the Interior Department describes the position that you have been nominated for as providing overall policy direction, leadership, guidance and assistance on a broad range of management and operational issues. I would say that the Department needs serious help in those areas given the repeated policy disappointments that we are seeing in my state. We had one bit of good news when the President came to the state in August when he made the decision to rename Mt. McKinley as Denali. We appreciated that. But Interior has also closed off half of our national petroleum reserve which was specifically designated for oil production. It has stalled projects in the NPRA that would help restore throughput in our TransAlaska pipeline system. It has effectively locked nearly all of ANWR up as permanent wilderness despite opposition from 70 plus percent of Alaskans. I am certainly not going to forget the heartless decision that Interior made to deny King Cove an 11-mile, life-saving road nearly two years ago or the absolute lack of assistance that Interior has provided since then as we have seen 32 more Medivacs from that community. We have had more recent examples that get my attention in a very, very strong way. A few weeks ago the deteriorating regulatory environment played a key role in Shell's decision to abandon seven years of work and $7 billion in investment in the offshore Arctic. And just this past Friday, Interior rejected lease extensions and canceled the offshore sales that are scheduled for 2016 and 2017. If you are an Alaskan and you are reading the headlines, you have to wonder what is going on within Interior. Why do they have it out for us? How can Interior set up a regulatory regime that prevents companies from having commercially viable exploration programs and then claim that it shows a lack of interest somehow in the Arctic? So Ms. Sarri, this is a long way of saying that you are going to need to convince me that you are part of the solution and not part of the problem for Alaska at the Interior Department. I have had good discussions with Ms. Kendall, but I am attempting to reconcile two conflicting impulses when it comes to this particular nomination. I strongly believe that Interior needs a permanent IG. I am disappointed the Administration has let the position go unfilled for six and a half years, but I am also committed to ensuring that the individual that we confirm is fully independent, with good judgment in difficult situations and a firm grasp of the responsibilities of an Inspector General, not only to the Secretary but to Congress as well. The law requires an IG to meet her independent obligations to Congress. While we expect that the IG always approach her work with civility, she must never compromise her independence. Ms. Kendall, I am sure you understand that the bar for an IG is high, especially as your confirmation would be tantamount to a lifetime appointment. The tenure that you have been involved with us for in this position has been marked by controversy, so you will hear legitimate questions raised today as to whether or not you are the right fit for the permanent positions. For the purposes of the Committee here this morning, we are going to be hearing again from all six of the nominees. Several of our colleagues will also introduce the candidates. There is a vote on the floor scheduled for 11 o'clock. In terms of the order here this morning we will first hear from Senator Reed. After we hear from Senator Reed, who will introduce Ms. Sarri, our fellow Committee members Senators Capito and Manchin will introduce Dr. Kimball. After those introductions we will ask the nominees to come forward, and then nominees will be invited to introduce their family members or any guests that are present. After those introductions I will swear in the witnesses, we will have a short statement from each nominee and then when the vote is called we will assess where we are. I would like to keep moving throughout the hearing this morning without taking a break, but we will assess that at the 11 o'clock hour. With that, I would like to turn to our colleague, Senator Reed, from Rhode Island. Welcome to the Committee. I know you are a busy Senator this morning as well, so we appreciate you coming by to make the introductions. STATEMENT OF HON. JACK REED, U.S. SENATOR FROM RHODE ISLAND Senator Reed. Thank you very much, Madam Chairman, Senator Cantwell, members of the Committee. I am delighted to be able to introduce Kris Sarri, the President's nominee to the Department of the Interior as Assistant Secretary of Policy, Management and Budget. Kris is joined today by her mother, Rosemary, her sister, Cathy, her niece, Gabriella, and her nephew, Alex, and I extend my warmest welcome to all of them. Kris is a native of Michigan. She first began service on Capitol Hill in 2001 as the Legislative Director of the bipartisan Northeast Midwest Senate Coalition which I chaired along with Senator Collins, and in that capacity she brought thoughtful, bipartisan, analytical skills to bear on a daily basis. She was somebody who worked both with Senator Collins and I very well and very effectively, and I think she will do that in the Department of the Interior. She always, indeed, made sure there was a thorough, thoughtful basis for the policies that the coalition proposed. After her work there, I was so impressed I asked her to join my office. She did. She was a key member of my team with respect to appropriations, natural resources and energy issues. Superbly gifted, talented, intelligent, thoughtful, asks the right questions and with a temperament that really inspired, not only confidence but collaborations. So I cannot think, again, of a worthier nominee that would come before this Committee. After leaving my office she was so good she was plucked away by the Department of Commerce where she was a Deputy Director of Policy and Strategic Planning and a principle advisor to the Secretary of Commerce. I think, once again, because of her success there, she was identified as someone who could add skill and expertise to the Office of Management and Budget. She served there as the Director of Legislative Affairs. Once again, contact with offices on both sides of the Hill in a bipartisan, thoughtful manner, and she really distinguished herself. She understands how policy works. She understands it is about principle, collaboration and compromise. She is particularly gifted when it comes to the issues in the environment that are so important to the mission of the Department of the Interior. I know she is going to do a superb job, and I thank you very much, Madam Chairman, for having this hearing. For my colleagues, she has got the temperament, the collaborative spirit, the tactical skills and the sincere commitment to serve the public interest with the highest standards. With that, I would urge the Committee's support, and once again, thank the Chairwoman for her gracious hospitality. Thank you, Madam. The Chairman. Thank you for joining us, Senator Reed. Senator Cantwell? I did not mean to skip over you. Senator Cantwell. That is okay. The Chairman. But felt that we should get our colleague here in and out of the Committee. I apologize, and I defer to you at this time. STATEMENT OF HON. MARIA CANTWELL, U.S. SENATOR FROM WASHINGTON Senator Cantwell. That is quite alright. We appreciate our colleague being here and speaking on behalf of the nominee. I thank the Chair for scheduling what I consider to be an important hearing and welcome all six of the nominees that are before us today because these are important positions. We have six nominees whose work really is the underpinning of the missions of two of our departments that this Committee has jurisdiction over. We have before us nominees for the top management positions for the Department of the Interior and the Department of Energy, and I consider these key, essential people to helping our agencies work. We have the leads of both agencies' premier science groups, and they provide very important scientific information and research necessary for the Departments to help carry out their missions. In addition, we have the head of the Nuclear Energy Office, who is responsible for designing safe nuclear reactors for the future and also finding a path forward for disposing of the waste from our current and past civilian and defense nuclear programs. Finally, we have the Inspector General for the Department of the Interior, who is responsible for ensuring the integrity of the Department's diverse and important operations. We are fortunate, I believe, to have six highly qualified, experienced nominees in front of us. Four of the six individuals have actually been performing the functions of these offices to which they are nominated in their current jobs and as the Principal Deputies to those offices--three of them for more than a year, so they have already demonstrated their fitness and ability to serve in the positions to which they have been nominated. Indeed, the Committee approved Dr. Kimball's nomination last year. I look forward to hearing from all of these nominees this morning, and I know that my colleagues will have great questions for each of them. So thank you for helping us move these important positions. The Chairman. Thank you, Senator Cantwell. At this time I would ask the six nominees to come forward and we will have introductions, again, as I mentioned from Senator Capito and Senator Manchin for Dr. Kimball. Senator Capito, if you would like to proceed with your introduction? STATEMENT OF HON. SHELLEY MOORE CAPITO, U.S. SENATOR FROM WEST VIRGINIA Senator Capito. Thank you, Madam Chair. I apologize in advance for my voice or lack of, so this is probably a good thing I have no voice. I am very pleased to join my colleague, Senator Manchin, in introducing Dr. Suzette Kimball today. I met her in April when she came to visit and talk about her position and her nomination to be Director of the USGS. I wanted to highlight a little bit about, how I feel the USGS really impacts a small state like West Virginia and how appreciative we are of their efforts. USGS helps to identify coal and mineral reserves, monitor water quality and provide accurate mapping which has been incredibly important throughout Appalachia. The scientists and researchers at USGS work to help keep our country safe from national disasters by monitoring earthquakes, wind, wildfires, volcanoes and their warning systems provide real-time information in times of crisis. Also, the USGS network of stream gauges throughout West Virginia and the United States are an important resource that helps our kayakers and our whitewater rafters make the most of their trips down river, helps fishermen find the best place to cast, helps engineers design bridges that can withstand floods and helps cities and towns better manage their water supplies. The USGS played a pivotal role in helping the West Virginia Department of Environmental Protection respond to the January 2014 Elk River chemical spill by collecting water samples and performing rapid analysis. I know that Dr. Kimball, in her past, has accumulated much valuable expertise and experience that she will bring to this position and that will benefit not just those of us in West Virginia but across the country. And I welcome her here today as a fellow West Virginian. Thank you. The Chairman. Thank you, Senator Capito. Senator Manchin? STATEMENT OF HON. JOE MANCHIN III, U.S. SENATOR FROM WEST VIRGINIA Senator Manchin. Let me just say that what my colleague and my friend, Senator Capito, has said is all accurate and very true. I am also pleased to be able to speak on Dr. Kimball's behalf. She has lived in West Virginia for 17 years and has served as a Deputy Director of the U.S. Geological Survey at the Department of the Interior since 2010. Dr. Kimball and I share a passion for the rich history of our state and dedication to public service. She is an active member of the Eastern Panhandle's farm land and historic preservation communities. In fact, she and her husband, Curt, live in a White House Farm. It is a local landmark built in the 1740's and used during the Revolutionary War to aid the American troops. Their farm was even surveyed by George Washington, so it is pretty special. Beyond our personal connection Dr. Kimball continues to impress me with her dedication to the scientific mission of the U.S. Geological Survey. The USGS is not a partisan agency. I repeat, not a partisan agency and issuing burdensome regulations, instead they provide crucial, impartial information and added to the Federal agencies and to the public. As Senator Capito just mentioned, she is, they were greatly involved in helping us during the historic effects of a spill in the Elk River that affected 300,000 West Virginians for quite some time. So I really appreciate her and her interest and involvement in that effort. I think I speak for all West Virginians when I say I am delighted Dr. Kimball has chosen West Virginia as her home, and I am grateful for her service. I would also like to remind this Committee that in June 2014 we approved her nomination by unanimous voice vote with not one dissention, so she has been at this for a while. I think it is time that we move on, if you will. She is doing the job. She has not changed one bit. She is the same Suzette Kimball that she was a year ago and she has been for quite some time. She will serve us very ably and capably. So I appreciate, very much, the opportunity to speak on her behalf and hope that all the Committee would receive her as we know her. Thank you. The Chairman. Thank you, Senator Manchin. At this time I would invite any of you at the table to introduce any family members that you might like to present before the Committee, and after that we will swear you each in. If we want to begin at this end, Ms. Sarri. Ms. Sarri. Thank you very much, Senator. I am so happy to have my family here with me today. I have my mom, Rosemary, who is sitting right there; my niece, Gabby; my nephew, Alex; and my sister, Cathy, with me. The Chairman. Good. Well, welcome to all of you. Ms. Kimball? Dr. Kimball. Thank you very much, Senator. I am really honored to be able to introduce my husband, Curt Mason; our daughter, Michelle Muerr; our close family friend, Lisa Herman; and her son, Aaron, who is already an accomplished political analyst. [Laughter.] The Chairman. Ahh, very good. We might need his help. Welcome to all of you. Ms. Kendall? Ms. Kendall. Thank you, Madam Chairman. I am pleased to introduce my daughter, K.J. Adler, who is also my best friend. The Chairman. Great, it is nice to have you here before us as well. Ms. Wassmer? Ms. Wassmer. Thank you, Madam Chairman. I would like to introduce my mother, Viola Becker; my husband, Franklin Wassmer; and my son, Christophe Wassmer, who were able to join me today. The Chairman. Good to have the family here. Ms. Murray? Dr. Murray. Thank you, Madam Chairman. It is my pleasure to introduce my sister, Nancy Murray, and her husband, Brad Curtis, who come here from Tucson, Arizona. The Chairman. Great, long way to come, good support. Mr. Kotek? Mr. Kotek. Thank you, Chairman. I am sorry to report my wife and school age children are back home in Boise. [Laughter.] Where they're attending to their studies, so. The Chairman. If they are in school that is a good thing. We appreciate that. At this time I would ask each of you to rise. The rules of the Committee which apply to all nominees require that you be sworn in connection with your testimony. Please stand 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? [All nominees answer, I do.] The Chairman. Before you begin your statement I will ask you three questions addressed to each nominee before this Committee. Will you be available to appear before the Committee and other congressional Committees to represent departmental positions and respond to issues of concern to the Committee? [All nominees answer, 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 have been nominated by the President? [All nominees answer, no.] Mr. Kotek. No, Mr. Chairman. The Chairman. Is that a no by each of you? I was not sure. [Laughter.] No. Are you involved or do you have any assets held in blind trusts? [All nominees answer, no.] The Chairman. Okay. Go ahead, be seated. Thank you very much. At this time I would ask that each of you present a short statement to the Committee. Your full written statements will be included as part of the record. After statements from each of you, we will have an opportunity, as members of the Committee, to present our questions to you. With that, Ms. Sarri, if you would like to proceed? Thank you. STATEMENT OF KRISTEN JOAN SARRI, TO BE AN ASSISTANT SECRETARY OF THE INTERIOR (POLICY, MANAGEMENT, AND BUDGET) Ms. Sarri. Thank you very much and good morning. Thank you, Chairman Murkowski, Ranking Member Cantwell and members of the Committee for welcoming me to the Committee this morning. It's a privilege to be considered by this Committee as the President's nominee for Assistant Secretary for Policy, Management and Budget (PMB) at the Department of the Interior. I want to thank Senator Reed for his support of my nomination and throughout my career. It's his dedication to public service, his work to improve the lives of others and his work ethic that really serve as a model for me. I'm very pleased, also, to introduce my family, my mom, Rosemary; my sister, Cathy; my niece, Gabby; and my nephew, Alex. My mom is a constant supportive inspiration to me. At the age of 89, she is still an active social worker and she still comes with me to Michigan home football games. So she's an involved member of her community. She, at a very early age, instilled in me the benefits and the need to engage in public service. I also want to acknowledge my dad, who was a Greek immigrant to this country after World War II. He fell in love with our national parks, and every summer he used to pack up us in the family station wagon and take us on a new adventure out West. It was really these adventures out West that inspired my love of the great outdoors, and it's something that I hope I'd pass along to my niece and to my nephew. My family has been a constant source of support for me, and I'm always thankful to them for their love. Finally, I want to thank members of this Committee and their staff for taking time to meet with me. If confirmed, I'm looking forward to continuing the conversations that we had and strengthening the vital relationship between this Committee and the Department. Throughout my career I've sought out opportunities to promote community development, natural resource stewardship and job creation by building partnerships and working to strengthen the effectiveness of government. Prior to joining the Administration, as Senator Reed mentioned, I have spent about nine years on Capitol Hill working for the bipartisan, Northeast Midwest Senate Coalition, Senator Reed and also the Senate Commerce Committee, where I was fortunate to have Senator Cantwell as my Subcommittee Chair. In each of these roles I had the opportunity to work with Senators who focus really on how government should work best to serve the American people while bolstering our economy and protecting the environment. I learned from them the value of strong, bipartisan cooperation and the need to gain other perspectives when developing policy. It's these lessons and experiences that I carry with me. Now as this Committee well knows, the Department of the Interior is a significant contributor to our nation's economy. And Interior has special trust responsibilities to American Indians, Alaska Natives, Native Hawaiians and affiliated Island communities. It's also responsible for conserving and protecting our natural resources and our cultural resources. So I view PMB's role as supporting the Secretary, Deputy Secretary and our bureaus as we work to drive impacts for the American people in our diverse areas of responsibility. PMB does this in several important ways. First, it works to ensure the sound stewardship of Interior's fiscal resources. Second, it works to increase the efficiency of our programs and reduce costs so we can invest more in mission. And third, through the management of the Department wide programs and policies, PMB helps with coordination and cohesion throughout the Department. For the past year I have served as the Principal Deputy Assistant Secretary for PMB, and I've had the privilege to work with a team of highly skilled and committed staff. If confirmed I hope to continue to strengthen the Department in a few key areas. First, Interior's work force. It is large, geographically diverse and increasingly eligible to retire. If confirmed I would want to work on efforts to increase our work force diversity in order to deliver mission effectively for the American people. Second, Interior is committed to improving access to public data with preferred transparency and also to improve resource management. For example, we are working with our partners in industry and academia and across the Federal Government to make public land data more available to help build apps, support tourism and improve customer service. And if confirmed I would like to continue with these open data efforts. Finally, PMB is responsible for Department-wide programs from wildland fire management to the cleanup of contaminated sites to emergency management. It also plays a key role in coordinating across bureaus and with other agencies on policies from invasive species, to land conservation, to youth engagement. And if confirmed I would welcome the opportunity to work with this Committee and the Congress on these issues. Again, I want to thank the Committee for considering my nomination, and I look forward to answering your questions. [The prepared statement of Ms. Sarri follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Ms. Sarri. Dr. Kimball? STATEMENT OF DR. SUZETTE M. KIMBALL, TO BE DIRECTOR OF THE UNITED STATES GEOLOGICAL SURVEY Dr. Kimball. Thank you, Chairman Murkowski, Ranking Member Cantwell and members of the Committee. I'm honored to appear before you today as President Obama's nominee to be Director of the USGS. And I thank you, Senators Manchin and Capito, for your kind introduction. I'm very proud to be a resident of wild and wonderful West Virginia. I would also like to acknowledge and honor my family, those here today and those watching at home. One cannot accomplish these types of jobs without the full support of one's family. I was raised to not only value public service, but to also see it as a responsibility. My father and brother had military careers. My mother was a teacher. Most of my cousins have served in the military or civil service and my husband dedicated his career to civil service, so for me, public service is the family business. Although I did not have a childhood steeped in outdoor experiences that set the stage for my career path, I had the good fortune to take a geology course from a remarkable educator, Dr. Gerry Johnson. His compelling lectures engaged my imagination and passion for understanding the processes that drive Earth systems and the impacts of natural events. My PhD program in Earth Sciences at the University of Virginia showed me the value of integrated environmental sciences, a context that forces one out of narrow, academic boundaries and requires competence in a spectrum of disciplines. This perspective will serve me well if confirmed as USGS Director as the questions we face today also transcend traditional academic fields and asks us to understand not only the geologic foundation in operative physical processes but also the potential impacts to biological systems and to the human environment. I've had the good fortune to serve in both academia and the Federal Government. My years in the National Park Service gave me an understanding of the pressures that land managers face and the types of information that can be most useful to them. This experience gives me a unique perspective to support and partner with the entire Department. Since coming to the USGS in 1998 I've had the opportunity to see the breadth and depth of this outstanding organization from many perspectives. It's noteworthy that we do not issue regulations nor do we manage resources. The scientific nature of the USGS, its national perspective and its non-regulatory role enable us to be both policy relevant and policy neutral. Since its founding in 1879, the USGS has made enormous contributions to the health and well-being of the country and the world as well. These achievements include the science that has delineated the mineral and energy resource base in the nation, that helps protect lives and livelihoods from the effects of natural hazards, that enable safe public water supplies, that supports restoration of ecosystems and that provides assistance to other nations for resource and hazard issues. Our society faces pressing issues that science can and must help address, challenges like ensuring sustainable development of natural resources, dealing with climate change, coping with natural disasters and ensuring water and food security. We live in a global economy. Understanding the worldwide distribution of both resources and risks is essential to the country's security and economic health. The USGS has made progress to address these issues including regional landslide assessments and earthquake early warning system. And we continue to develop nationwide, 3D elevation data, new hyper spectral technologies to map mineral distributions. And we brought new life cycle analyses to critical minerals analysis. We have advanced the national assessment of groundwater availability. We have developed new strategies to contain the Asian Carp and other invasive species. And we've contributed to the science needed to understand critical ecosystems such as the sagebrush steppe. In all of these efforts we appreciate the support of Congress and in particular, this Committee. Looking to the future the USGS needs to continue these efforts for which we have unique capabilities, but we also need to be responsive to emerging needs. We are increasing the involvement of sociologists and economists in our studies in order to ensure that our science is relevant to the public. We're providing new technologies to protect public health and safety and new tools for communities to become resilient in the face of challenges such as changing climate or water scarcity. And we are engaging young scientists to be part of our future, a future that will be worthy of our long history of achievement for the nation and the world. I'm deeply grateful to Secretary Jewell and President Obama that they've chosen to nominate me to lead this outstanding scientific organization. If confirmed, I look forward with working with you to address the challenges that face our nation. Thank you very much for the opportunity to appear before you. And I'll be happy to respond to questions. [The prepared statement of Dr. Kimball follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Dr. Kimball. Ms. Kendall? STATEMENT OF MARY L. KENDALL, TO BE INSPECTOR GENERAL AT THE DEPARTMENT OF THE INTERIOR Ms. Kendall. Thank you, Madam Chairman, Ranking Member Cantwell and members of the Committee. I'm honored to be considered by you for confirmation as the Inspector General for the Department of the Interior. I have been privileged to lead the OIG for the past six and a half years during which time the OIG has had 195 convictions, $4.5 billion in criminal fines, penalties and restitution, over $119 million in questioned costs and $55 million in funds put to better use. On average over the past five years the OIG for Interior ranked fifth for return on investment among the 72 OIGs. My leadership style underpinned by employing dignity and respect has proven effective in motivating the OIG work force to conduct meaningful work, reduce influential reports and affect significant change in the programs and operations of Interior and which put the OIG in the top 15 percent of the best places to work in 2014. Recently I met with many of you and/or your staff. We've discussed many issues, some important to your constituents, some of which you embrace with enormous passion and some that have made my nomination subject to controversy and criticism. I've tried to address the controversies that have followed me from the House Committee on Natural Resources. Whether I have done so to any of your satisfaction, I do not know, what I do know is that I have been true to myself, my principles, my best judgment and the law. My personal style to engage in civil discourse, even when addressing difficult issues, has been criticized by some as being too accommodating. Civility, in my experience, however, is not an accommodation but rather a strong and effective tool in communicating with and holding DOI accountable. Coming to this hearing I have both the benefit and the burden of having a track record as the acting Inspector General. And as such, I have made certain legal, policy and management decisions that have not always been well received by some Members of Congress, of my staff, of the public and even officials of the Department. Although I sometimes joke, I am rather serious when I say, if I am making everyone a little unhappy, I'm probably doing my job. As with many things in life, having the benefit of 20/20 hindsight, I may have made some of those decisions differently. Yet in the moment I have always acted on my conscience and principle, guided by the best information available at the time with the advice of trusted and tested advisors and with integrity, independence and objectivity as my guides. I have always conducted myself in the best interest of the OIG and of the greater IG community both of which have provided me unflagging support throughout my entire ten years in the IG community. I do not expect to convince you by my words here alone today of my independence and objectivity, rather I point to some of the most influential work the OIG has done since 2009 which I describe in my much more detail in my written testimony. The depth and breadth of the programs in DOI are both vast and complex. Under my leadership the OIG has focused its attention and resources on the highest risk and highest priority issues in the Department and to address the areas of greatest vulnerability to fraud, mismanagement and misuse of Federal funds. Madam Chairman and members of this Committee, I sit before you today as a career civil servant for over 29 years. I sincerely believe that public service is a public trust requiring me to place loyalty to the Constitution, the law and ethical principles above private gain. I have no other ambition than to continue my public service with dignity and respect for our employees and for our stakeholders. I believe in the mission of the Inspectors General. I am committed to the OIG for Interior and if confirmed, I will continue to do the very best job I can to lead this respected organization in its ongoing efforts to prevent and detect fraud, waste, abuse and mismanagement in the Department of the Interior. Thank you for your attention and consideration. I'd be glad to answer questions. [The prepared statement of Ms. Kendall follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Ms. Kendall. Ms. Wassmer? STATEMENT OF VICTORIA MARIE BAECHER WASSMER, TO BE UNDER SECRETARY OF ENERGY Ms. Wassmer. Good morning, Chairman Murkowski, Ranking Member Cantwell and other members of the Committee. It's my honor to appear before you today as President Obama's nominee for the Department of Energy's Under Secretary for Management and Performance. If confirmed I will work every day to support Secretary Moniz and to advance the Department's critical efforts to ensure America's security and prosperity by addressing its energy, environmental and nuclear legacy issues through strong performance and management practices. Before I begin I'd like to thank my husband, Franklin, and my two sons, Alexander and Christophe, two of whom are here with me today, along with my mother, Viola Becker. I would not be here without their encouragement and support. My two sons, now both in high school, routinely challenge me to grow in ways I never could have imagined, and they also make sure I laugh. My husband, Franklin, who has worked for the last 20 years in the local public charter school movement, grounds me every day to not only do meaningful work, but to live a meaningful life. Our commitment to community and public engagement, instilled in us by our parents, has been the cornerstone of our own family. Commitment to public engagement is what propelled me to spend the majority of my 25-year career in public service, including 17 years in management and leadership positions within the Federal Government. Most notably, I currently serve as the Assistant Administrator for Finance and Management at the Federal Aviation Administration. Previously I served as the Chief Financial Officer and Vice President for Administration and Finance at the Millennium Challenge Corporation (MCC). At the MCC I was responsible for realigning corporate services to better support the agency's mission. Within my first six months I instituted an annual customer satisfaction survey as well as a new performance management system to increase employee engagement. We saw a double digit improvement in 2011 from our 2010 customer survey results as well as a double digit improvement in my team's FedView survey results over that same period. I reconstituted an executive oversight board, tightened our internal controls and improved management practices, all of which helped to optimize budget resources to better support the mission of the MCC which is to reduce poverty through economic growth. In August 2011 I became the FAA's first ever Assistant Administrator for Finance and Management overseeing the transition of the agency's finance, acquisitions, information technology and regions and center operations into an integrated shared services model. Today I am responsible for the efficient and effective performance of these critical services and support of the agency's aviation safety mission. I also manage the FAA's $16 billion budget and lead the agency's efforts to identify cost savings, leverage technology and ensure critical acquisitions remain on cost and schedule. Over the last four years my team and I employed strategic planning, performance and program oversight to help the agency save more than $360 million through our cost control program. This included nearly $130 million in savings through our strategic sourcing program. We also reduced the agency's administrative footprint and exceeded our environmental goals in fleet and petroleum usage. In addition to receiving clean audit opinions each year during my tenure, we have led the agency in achieving the CEAR awards for the FAA's annual performance and accountability reports. We have also implemented an enterprise-wide, integrated IT strategy, decreased IT contract costs by more than $30 million, deployed a new cloud-based email system, implemented a cloud strategy utilizing an innovative brokerage model contract and consolidated our IT help desks from seven to one. We did this all while addressing increased cyber attacks. I believe my experience and formal education have prepared me well to take on this new role at the Department of Energy. I have a deep understanding of what it takes to be an effective leader in a government agency, to be a responsible steward of the taxpayer's resources and to create and transform an organization to be high performing. I believe in working collaboratively and accountably as a team creating an environment that brings out the best in everyone as we work together to take programs to new levels. Growing up my parents instilled in me the belief that public service is a noble calling and it's an honor to be able to serve others. If confirmed as the Under Secretary I will work every day to be worthy of the privilege. Thank you and I welcome any questions you may have. [The prepared statement of Ms. Wassmer follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Ms. Wassmer. Dr. Murray, welcome. STATEMENT OF DR. CHERRY ANN MURRAY, TO BE DIRECTOR OF THE OFFICE OF SCIENCE AT THE DEPARTMENT OF ENERGY Dr. Murray. Chairwoman Murkowski, Ranking Member Cantwell and members of the Committee, thank you for the opportunity to appear before you today as you consider my nomination for the position of Director of the Office of Science at the Department of Energy. It's an honor to be here and to be nominated by President Obama and supported by Secretary Moniz. The DOE Office of Science manages ten national laboratories, many major scientific user facilities and it's the largest supporter of physical sciences research in the U.S. If confirmed I look forward to working with this Committee to maintain the nation's leadership in science. I was born in Fort Riley, Kansas. My father was in Officer Training. He was also in civil service all his life. He spent his career as a diplomat and alternately in the Army. Until I was 17 I moved with my family almost yearly. We lived in Japan, Pakistan, South Korea and Indonesia. My parents were both artists, and I assumed I'd also be an artist. I'd spent the first two years of high school in Alexandria, Virginia. In ninth grade I had an inspiring chemistry teacher. I was enthralled by doing lab experiments and by the beauty of math that explained the science. For me, it was like creating order from chaos. I was hooked and I decided right then to be a scientist and to keep art as a hobby. I attended MIT where I received my Bachelor's degree and Doctorate in Physics. I then spent 27 years at Bell Labs Research which was, at the time, one of the top places to do research in the world. At Bell Labs we focused on everything from basic science to applied engineering and product development and I rose to Senior Vice President managing research and development, inventing and innovating the future of telecommunications. During those years I experienced directly how breakthroughs in fundamental science lead to the most disruptive technologies in the market. I also learned that the transition from basic science to technology development and ultimately to new products is never easy and it is not a linear process. It is more of a spiral. In 2004, I became Deputy Director for Science and Technology at Lawrence Livermore National Laboratory and experienced how important science is as an underpinning of our national security. In 2009, I became Dean of the School of Engineering and Applied Sciences at Harvard. Having interacted with spectacular undergraduate and graduate students who eagerly want to solve problems that make a difference in the world, I am optimistic about our nation's continued science leadership. I was a member of over 20 national academy study committees including the Committee that wrote the Rising about the Gathering Storm report. I also served on the Presidential Commission on the Deepwater Horizon oil spill, and I now serve on the Congressional Commission to review the effectiveness of the national energy laboratories. As in all technology advances the major technology revolution that is happening right now in our energy system will be catalyzed by advances in science. In the past, as a nation, we could rely on the great industrial research labs. They could provide leading edge science relevant to technology and did, but industry is no longer doing as much fundamental science now. We must harness the enormous potential of the DOE national laboratories, working with our great research universities in collaboration with industry. I look forward, should I be confirmed, to leading the DOE Office of Science and the national laboratories it stewards and to be working with this Committee to ensure that the U.S. continues to be a leader in scientific advances and the translation of these advances into new technologies, important for our sustainable energy security, national security and economic growth. Thank you. I'd be happy to answer any questions. [The prepared statement of Dr. Murray follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Dr. Murray. Mr. Kotek? STATEMENT OF JOHN FRANCIS KOTEK, TO BE AN ASSISTANT SECRETARY OF ENERGY (NUCLEAR ENERGY) Mr. Kotek. Chairman Murkowski, Ranking Member Cantwell, members of the Committee, thank you for the opportunity to appear today as you consider my nomination to be the Assistant Secretary of Energy for Nuclear Energy at the U.S. Department of Energy. I'm honored to have been nominated for this post by President Obama. I also deeply appreciate the confidence that Secretary Moniz has expressed by asking me to serve in this capacity. And I'm grateful for the statement of support for my nomination provided by Senator Risch and the Idaho Congressional Delegation. I'd like to start by thanking from the bottom of my heart, my wife, Denise. She's been extraordinarily supportive of me throughout our 21 years of marriage, and she understands completely the challenge we've been asked to undertake, having herself worked at DOE back in the 1990's. Now earlier this year I was appointed as Principle Deputy Assistant Secretary in DOE's Office of Nuclear Energy. This is actually my third stint as a DOE employee having started my career at DOE Headquarters in 1989 then rejoining DOE as Deputy Manager of the Idaho Operations Office from 2003 to 2006. Between my first two jobs at DOE I was on the staff at Argonne National Laboratory at the old Argonne West facility in Idaho which is now part of the Idaho National Lab. While I was born in Hawaii and raised in Massachusetts, I've called Idaho home since 1999. And I should note that during my time with Argonne in 2002 I served as the American Nuclear Society's Congressional Fellow working in the Office of Senator Jeff Bingaman when he chaired this very Committee. After leaving DOE in 2006 I went into the private sector advising clients on a wide range of energy and natural resource issues with the particular focus on the siting of controversial facilities. I believe that my facility siting experience coupled with my nuclear background served me well in my role as Staff Director for the Blue Ribbon Commission on America's Nuclear Future, a position I served in from 2010 to 2012. My time as Staff Director was truly one of the highlights of my career and not just because it gave me an opportunity to work for people like Co-Chairman Lee Hamilton and Brent Scowcroft, Senators Pete Domenici and Chuck Hagel, and of course, Dr. Ernest Moniz. The main reason my service was such a highlight was that it gave me an opportunity to help a bipartisan panel, made up of some of the best minds in the country, dig deep into a controversial issue and develop a set of recommendations that were unanimously adopted and widely accepted by individuals and organizations on all sides of the nuclear waste issue. I know that the Commissioners have been heartened by the work this Committee has done to incorporate the BRC recommendations into proposed legislation, and I'm eager to work with you and others to see the nation's nuclear waste management program advance and set a solid foundation for the program going forward. Looking at the mandate of the nuclear energy organization more broadly, I've long believed that nuclear energy can and should play an important role in meeting our twin objectives of meeting rising global energy demands while addressing the threat posed by emissions of carbon and other greenhouse gases. To be sure, nuclear energy isn't the only way of tackling this challenge and I believe the President's All of the Above energy strategy gives us the best chance of meeting carbon reduction goals both at home and abroad. In the nine months since I returned to DOE I've seen great opportunity for DOE to work with industry, universities, our national labs and with international partners, to ensure nuclear energy technologies can continue to meet current energy demands while providing opportunities for new nuclear energy supply in the intermediate and long terms. I'm particularly excited about the opportunities for technologies like small modular reactors and even more novel reactor technologies to provide safe, affordable, low carbon electricity and other energy products, potentially including processed heat, hydrogen production and desalination services. If I'm fortunate enough to be approved by this Committee and confirmed by the Senate, these are the kinds of areas that will be my focus. I also look forward to working with this Committee to identify additional opportunities to advance nuclear energy as part of our low carbon energy future. I hope to secure your support so that I might have that opportunity. Thank you, and I welcome any questions you may have. [The prepared statement of Mr. Kotek follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, Mr. Kotek. Thank you, each of you, for your comments this morning, and again, your willingness to serve and your willingness to go through the gauntlet of questions that we will have for you this morning. Just for the information of members, my intention is to continue the committee process throughout this vote. I would ask that when the vote is called if you just leave and vote and then come back. After Senator Cantwell and I have asked our questions the first up on the Republican side is Senator Cassidy and he will be followed by Senator Franken--just so you know when to pop in and out. At this time I will proceed with the first round of five minute questions and direct my first one to you, Ms. Sarri. You have indicated that you have now been the Principal Deputy there at PMB for about a year or so, and that in this role there is a department-wide review coordinating across agencies which, of course, is necessary in this area. I mentioned in my opening remarks, and I think you might hear the frustration in the words, I am a little bit under the weather this morning, otherwise you would have heard a little more animation in my voice as well. So maybe you have been saved by a long airplane flight and a little bit of the flu. But there is a great deal of frustration in my state right now, not the least of which is coming from the Shell announcement that while they did not see what they were hoping, it was also complicated by the fact that seven years and $7 billion leads them to turn away from a prospect that was not only important to Shell, but very, very important to the State of Alaska. Then on Friday to learn from the Secretary, by voice mail, before a public announcement that the lease extensions were not going to be renewed, not going to be considered, as well as cancellation of the offshore leases for '16 and '17, an incredible blow and a hit to the State of Alaska in regards to our opportunities to explore anything offshore. This is at a time when again the Secretary and the President know full well that we have got a pipeline that is less than half full and we are looking as a state to be able to move in some of these areas--and we have been hindered at all turns. The question that I have for you this morning is what was your role in these decisions as they relate to offshore Arctic? What was your role as Principle Deputy at PMB in these decisions? Ms. Sarri. Senator, thank you for your questions. I have the same cold as you do, so I hope you feel better. Let me just first start by saying really quickly that Alaska is incredibly important, obviously, to energy production in this country. And the safe and responsible development in the Arctic is an important part of that picture. The Chairman. But we are not seeing it coming out of the Administration. Ms. Sarri. I was not involved in either of the decisions announced on Friday. My role at PMB is really on those cross- cutting policy initiatives. I mentioned a couple just invasive species and youth issues, energy issues that firmly lie with BOEM and BSEE. The Chairman. So you had no involvement in terms of the decisions either as it related to the lease extensions or the cancellation of the '16 and '17 offshore leases? Ms. Sarri. No, Senator, I did not. The Chairman. The drilling regulations that are coming up are, again, something that we are very, very keenly looking at. BOEM and BSEE are in the process of developing these regs now to address offshore drilling safety in the Arctic. The concern that many have is that what Interior will lay down will be regs that are so burdensome and so excessive in terms of the regulatory controls that effectively pushes even further off the opportunity for activity in the Arctic. In this position you are being nominated for, how would you work to bring greater certainty because that is what we are looking for here is certainty to the Federal regulatory environment in the Arctic? Ms. Sarri. So, Senator, again, that's something that BOEM and BSEE work closely on when they're doing regulatory development. And the important role I think I play in that effort is to make sure that those two Bureaus have sufficient staffing to meet their regulatory mission and to carry out regulations working with industry. The Chairman. So when you say that, I mean, your title is Policy, Management and Budget. So you are suggesting to me that on the policy side of it the only thing that you do is make sure you have sufficient staffing available for that? Ms. Sarri. On this particular issue that you were raising where my nexus is really working on the budget side of the equation and not so much on the regulatory development. When it comes to the policy issues at PMB, it is really on those that have cross-cutting nexuses with all the different Bureaus where you want to have that cohesion and coordination. As I was mentioning one of the big areas that we play in is invasive species which have an impact across public lands and in communities or wildland fire development. So when it's very mission specific to a bureau we, the bureau, are responsible for that effort. But with that case coming out, I think one of the important things I need to do is have a responsible role in terms of making sure we're budgeting responsibly for that and also where it's appropriate for me to offer oversight. The Chairman. I will have some further questions here. Senator Cantwell? Senator Cantwell. Thank you, Madam Chair. Like you, I have many questions for our nominees but only five minutes, so I am just going to throw it out there and see if we can get a lot of feedback. Mr. Kotek, I wanted to ask you about the recommendations to separate defense and commercial waste--whether you will come up with a plan to move forward on that, whether that plan would include impacted communities, and what technical issues do you think need to be addressed so that we can get there? I am so glad that Dr. Cherry and Ms. Wassmer are sitting next to each other because when it comes to cleaning up Hanford, you represent both ends of this puzzle. Dr. Cherry, I want to know if you agree--the National Lab Commission that you served on said that science should play a larger role in helping us with some of our major nuclear waste sites and the remaining issues. Some of the waste, we still do not even have solutions for on the science side. Ms. Wassmer, how do you plan to complete in a timely fashion both getting the Vitrification plant done and the Waste Treatment plant done? So both of the waste treatment facilities, obviously, have had many challenges. How do we complete that? Lastly, Dr. Kimball, I do not know if you read the New Yorker article about the Cascadia Fault and the challenges of what is an analysis of a 300-year event that could hit the Pacific Northwest, but my colleague, Senator Murkowski, and I have introduced legislation on better monitoring. What do you think we need to do to actually get that better monitoring in place? So, as quickly as you can go. Mr. Kotek. Certainly, I'll start. Thank you for the question, Senator. What you've touched on, of course, is the Administration's commitment to a consent based siting process to develop new facilities for the storage and ultimately for the disposal of nuclear waste. The Administration is committed to a consent-based siting process that involves working with states, tribes, local governments, in a way that leads to signing agreements with what we'd call, a willing and informed host, community for those facilities. As we learned through the Blue Ribbon Commission process, communities, states, tribes are going to need to answer two fundamental questions when it comes to their willingness to host such facilities. One is can we do this in a way that's fully protective of people and the environment? And then second is can our community, state, tribe, feel like they're better off for having taken on this challenge until it becomes incumbent upon us to provide information, technical resources, other assets to them as they work through answering those types of questions. Senator Cantwell. So will you come up with an actionable plan on separating defense and civilian waste? That is what I am asking. Mr. Kotek. Oh, I'm sorry. When it comes to the defense waste, yes. We have, the President acted on a recommendation from the Secretary to, in fact, pursue a separate repository for defense waste. That announcement was made back in March, and we're now in the process of developing plans for that. Senator Cantwell. Great. Mr. Kotek. So yes, and thank you. I'll look forward to working with you on that, if I'm confirmed. Senator Cantwell. Okay, great. Dr. Cherry? Dr. Murray. Thank you for the question, Senator. Of course, science really is the underpinning of pretty much every technology, and one of the things that the Commission noted is that with the enormous amount of resources that we're spending on environmental cleanup more science is definitely necessary. So already we've had scientific consensus, workshops and meetings of scientists and environmental managers to try to figure out what are the scientific breakthroughs that we can do. And you will see more on this. I'll be very glad to work with you. Senator Cantwell. Thank you. Ms. Wassmer. Thank you, Senator, for the question related to WTP and the importance of that for the Hanford site. I've had high level briefings from the Department of Energy. And if confirmed, I would be getting more to speed up with the details. But I do understand the phased approach that the Department is recommending in terms of that facility and do believe that it's very important to ensure that we can both treat, store and then ultimately safely dispose of waste. Senator Cantwell. Well, I will look for it. I know you have done good work at the FAA, but part of the issue at Hanford has been somebody proposes some great idea, a new secretary comes along and then they realize later that doesn't work. And then we've spent billions of dollars, and we have to go back. I just hope that we will move forward on a path of certainty here--we have leaky tanks, and we need to get them cleaned up. Dr. Kimball, getting our monitoring system? Dr. Kimball. Right. Our priorities are absolutely to provide the kinds of information that are necessary to protect public health and safety, and early warning systems are very important. And that requires monitoring. We very much appreciate the attention that this Committee has provided and you and Chairman Murkowski in introducing the legislation that would establish the National Volcano Early Warning System. We feel that that's an important step forward and the attention, the national level attention, that this legislation brings to the issue, we feel is very important. I look forward, if confirmed, to working closely with you to ensure that we do have those kinds of systems in place. Senator Cantwell [presiding]: Thank you. Senator Cassidy? Senator Cassidy. Ms. Sarri, I think you mentioned your mother is a Michigan football fan just to get the sympathy vote. Did you know, that is just, kind of, my bias? [Laughter.] Of anyone. Ms. Sarri. Did it work? [Laughter.] Senator Cassidy. Not from the Michigan State people, you know, they are---- [Laughter.] First I would like unanimous consent to introduce a letter on behalf of my Louisiana colleague, Senator Vitter, regarding Ms. Kendall's nomination. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Senator Cassidy. Ms. Kendall, you came by my office. We had a nice visit. Thank you. Some of the questions will be followup to that or even the same, but it is more for the public record as opposed to our personal conversation. To set the stage for others when the Macando oil spill occurred there was a report issued by the Department of the Interior suggesting that eight safety experts felt as if the moratorium instituted by the Department was appropriate. As it turns out those eight experts did not agree with it and said that it would not measurably reduce risk and would have a lasting impact upon the nation's economy that my state still suffers from that decision to go forward with the moratorium despite the experts saying not to. And there was an investigation that ensued. So with that stage set, I will proceed. As you know and as we spoke in the office, there was an issue that you were to investigate who altered the report and yet simultaneously were being involved--took membership on the Safety Oversight Board of the OCS. There was a tension there. On the one hand you were to investigate something of which you were a part of. So would you please address that? Ms. Kendall. I will, Senator, thank you. The details are, sort of, in the weeds, but the distinction is the Safety Oversight Board was charged with putting together long-term solutions or recommendations for safety and oversight in the Outer Continental Shelf. The report that we were being asked to review, the IG was asked to review, was something called the 30 day report. And it was a short-term report requested of the Secretary by the President to make immediate recommendations to solve some of the immediate problems that were being faced in the Gulf because of the Deep Water Horizon disaster. And so the Safety Oversight Board did not have a role in that 30-day report. Senator Cassidy. Can I ask? Was there anyone on the Safety Oversight Board who could have potentially, knowing that you could not know then what you know now, who could have potentially been involved with the alteration of the original report in the sense where you are rubbing shoulders, breaking bread, with those whom you might otherwise have to hold accountable for having altered a report? Ms. Kendall. I don't believe so. And it was not---- Senator Cassidy. Could you have known that when you joined the Safety Oversight Board? It does not seem as if it is conceivable that you could have known. Ms. Kendall. Undoubtedly, I couldn't have. Senator Cassidy. So just intuitively if you are rubbing elbows and breaking bread and coming together on a mutually agreeable basis we have got to figure this out. At the same time you may potentially be holding someone accountable for something which truly was wrongdoing. It seems as if you have set yourself up for a conflict of interest. Ms. Kendall. I understand how that perception could be or that conclusion could be drawn. In fact, however, the Safety Oversight Board was not involved in that 30-day report. Senator Cassidy. I accept that. But, as we spoke earlier, it would have been hard to know then that there were not people on one board who may have been responsible for a wrongdoing elsewhere. Ms. Kendall. Except there were only three people on the Safety Oversight Board, and I knew who was involved in the 30- day report. Senator Cassidy. I accept that. Now I have an email from an Assistant Secretary in which it seems as if some of the Inspector General's staff were uncomfortable with your involvement with the Board. So I will not quote at length, although I could, but just suffice it to say it does seem as if within the organization it was perceived as a conflict of interest by some. Let me ask as well, and we have spoken about this before but again for the public record, the House has previously or I guess maybe, the Senate, but I am more familiar with the House, has requested information of your staff as regards to this whole episode and the Inspector General's staff did not submit that information. Now in our conversation you said, well, never before have Inspector Generals been offered this and it was really up to the House to go to the Department to provide the information. But at some point if there is a set of circumstances in which you would serve on an Oversight Board, because we really have to make things work here and this is a bending of the rules or a potential conflict of interest that maybe could be overlooked in order for the greater good, if Congress is going after a record and Interior will not give it to them, it almost seems like the Office of Inspector General not giving it as well serves the interest of the Department. And we are frustrated because we cannot exercise oversight because both are playing rope-a-dope. What are your thoughts about that? Ms. Kendall. Well Senator, in this case we're talking about documents that Executive Privilege came into play. Senator Cassidy. As I gather though, that was something that you invoked that the Administration did not invoke prior to you. Ms. Kendall. No, we did not invoke it. The OIG did not invoke it. Senator Cassidy. Okay. Ms. Kendall. The Department led up to invoking it. Only the President can invoke Executive Privilege, and what we were doing was trying to get the House Committee and the Department to talk and resolve that issue as opposed to asking the OIG to play referee. Senator Cassidy. Then I will go back to my point. If the Department decides to rope-a-dope and not give information to Congress, we have no place else to go but the OIG. Theoretically your loyalty is to both, to the Department and to Congress. In that case it served the purpose of the Department but not for the purpose of transparency. Thank you again. I yield back. The Chairman [presiding]: Thank you, Senator Cassidy. Senator Franken? Senator Franken. Thank you, Madam Chair. Ms. Kendall, welcome. It is always a pleasure having a Minnesotan in front of the Committee. In your testimony you underlined that some may mistake your civil dealings with the Department of the Interior as being too accommodating. I appreciate that you bring some Minnesota nice to the Federal Government. However, could you tell me about how you view the role of the Office of the Inspector General as an independent entity? Ms. Kendall. Yes, sir. Thank you, Senator. The OIG plays an important role in terms of holding the Department accountable. We do that through audits and investigations primarily, and our findings come through and then we follow up with recommendations. I think that the responsibility of the OIG is to call things as it sees them through its audits and investigations and make meaningful recommendations that will help the Department improve its operations and resolve problems. Now those are not always happy discussions, but I think they can always be civil. And that has been part of my role is to engage in difficult discussions with the Department usually about difficult problems that are not easily solvable but to do it in a productive and a polite manner. Senator Franken. Thank you. I know that Senator Cassidy was asking about some of the controversies around the Deep Water Horizon oil spill. In 2008 Congress established an Integrity Committee to investigate allegations of wrong doing that were made against Inspectors General. The Integrity Committee includes a Senior FBI official who serves as the Chairman, the Director of the Office of Government Ethics, the Special Council and Foreign Inspectors General. You mentioned in your testimony certain controversies which Senator Cassidy mentioned involving your office's handling of matters related to the moratorium, the drilling moratorium, which was exhaustively investigated by the House Natural Resources Committee. It is my understanding that the three Gulf State senators asked the Integrity Committee to investigate allegations of misconduct involving your handling of this matter as well. I understand that the Integrity Committee appointed an Inspector General from another Department who conducted an independent investigation but could find no evidence to support any of the allegations. The Integrity Committee reviewed the Inspector General's report and adopted its findings and conclusions as its own two years ago, and the matter is now closed. Is that a fair summary of the Integrity Committee's investigation and conclusion? Ms. Kendall. I think it is a fair summary, sir, but we also provided that information to the Committee in written form so the Committee has that. Senator Franken. Thank you. I would like to move on to Dr. Kimball. Next month the Administration will fly to Paris for historic negotiations on an International Treaty to curb greenhouse gases. While the state of science is sufficiently matured to act, climate change research is ongoing and remains a priority both for me and for the U.S. Geological Survey. Dr. Kimball, can you describe how you envision the role of climate change research within the USGS as well as some of the current areas of exploration? Dr. Kimball. Yes, Senator, thank you very much for that question. Senator Franken. Bad microphone. Dr. Kimball. Thank you. The USGS has been studying climate effects for several decades, nearly all of our 136 year history. And we are in a unique position because we can examine the geologic record and look for those changes that are associated with natural processes verses changes that are exacerbated by other activities. So we do intend to continue. We have a missionary dedicated to climate and land use change in which we brought together the work that we've been doing across the bureau to eliminate internal duplication of effort and to ensure efficiencies. We plan to be working on downscaled models to look at the impacts of climate variability associated with things like drought, reduced snowpack and snow melt, coastal changes, changes associated with different storm regimes, both in terms of tropical storm intensity and tropical storm patterns and to look at how those impact and are connected with decisions about land use change and carbon sequestration and carbon storage to identify climate resilience activities that can be taken at local and community levels to mitigate these impacts. Senator Franken. Thank you. I am out of time, but Madam Chair, since it is just you and me, can I ask one more question? The Chairman. Okay. [Laughter.] Senator Franken. Thanks. This is for Dr. Murray. I am pleased that the bipartisan energy bill that we passed out of Committee in July includes additional funding for energy storage research and development. As our grid continues to evolve I believe that new energy storage technologies will be essential for providing enhanced grid stability and enabling variable renewable energy sources to meet continuous electricity demand. I also believe that the Department of Energy has an important role to play in this effort. Dr. Murray, what role do you see for the Office of Science in developing transformative energy storage technologies including through ongoing activities at the Joint Center for Energy Storage Research? Dr. Murray. Thank you, Senator, for the question. Of course, science has a lot to do with energy storage. For the first, materials are essential. The study of catalysis, the study of chemical reactions, the study of new possibilities for materials in the modeling using high performance computing, all of which is going on at JCESR, the Joint Center for Energy Storage and Research which, is an Office of Science hub, is looking at the generation beyond lithium ion batteries. What that has accomplished so far, just in its first three years, has gotten the industry, who have been working on storage, as you know, for hundreds of years, to accelerate their technology. So the lithium ion industry is decreasing the cost of lithium ion batteries just because we have this storage hub. They're creating a data base of different types of electrolytes and different types of materials that could be used. You can up, if you can make it work, you can up the storage capacity of a battery by using magnesium which has two charges instead of lithium which has one. And so they're going in that direction. So this is beyond. It's collaborating with industry but it's beyond what industry would feel comfortable doing because they have no idea of whether it's going to end up anywhere near a product. But that's where, I think, the Office of Science fits. It's between the universities who cannot easily do these big projects which go from science all the way to prototype and industry which looks at the prototypes and says, you know that's a good idea. I think I can actually make that cheaper and I can make a product out of it. So it's this joint--this hub is working extremely well, and I invite you to visit it. Senator Franken. I would love to do that. Where is it? Dr. Murray. It's located at Argonne National Lab. Senator Franken. Okay. Dr. Murray. Near Chicago. Senator Franken. Okay. Well, thank you. Thank you, Madam Chair, for indulging me. The Chairman. Thank you, Senator Franken. Senator Portman, you are up. Senator Portman. Thank you, Madam Chair, I appreciate it. I was here earlier and had the opportunity to hear some of the testimony and some of the questions, and I appreciate all of you being willing to step up and serve. Many of you have served before or in other capacities. My questions are to the Department of Energy, to our friends who are here interested in getting confirmed for important positions that are going to affect the livelihood of a lot of people in my state, including at the Piketon Nuclear Enrichment, Uranium Enrichment Plant, in Pike County, Ohio. We have had a tough time there. As some of you know this is the site where we uniquely enrich U.S. uranium. It is important for our nuclear arsenal. As Mr. Kotek said earlier, it is important for our nuclear energy industry. It is also critical because it provides tritium which is required for the arsenal and our nuclear navy, of course. So we have recently had 500 employees at the site who received warn notices. This is for the cleanup of the old technology. This is very frustrating for me because for years and years we have received commitments from the Administration, this Administration and others, to clean up the site. And frankly, the commitment has not been honored. So my questions are going to relate in part to that cleanup. Ms. Wassmer, you are interested in being Under Secretary of Energy, so you are going to have a lot of responsibility for the cleanup side of things. President Obama said in 2008, the failure to clean up this site quickly will one, delay future economic development opportunities. Very true. I was out there a few weeks ago, and again, they cannot move forward with the economic development of that area, one of the poorest areas of Ohio, unless they get this cleanup done. Of course, they need to remove the radioactive and other waste that is there. Second, according to the President, will only add additional mortgage costs. Wow, with the commitments that have not been made, the taxpayer gets stuck with the bill, about $4 billion more over time to the taxpayer already with the slowdown in the cleanup that we have seen in this Administration. Third, he said, will pose undue environmental risks. Well, yes, part of the reason you cleanup these sites is to ensure that the communities are safer. We are really frustrated because again and again the Administration has made commitments and not kept them. In 2009, DOE made a secretarial commitment to the community to accelerate the cleanup and complete the work by 2024, and if you are interested in having that in writing I am happy to provide it to you because Secretary Moniz wondered about that. It is true, and we have talked about it many times. The press release at the time said accelerating the cleanup was an effort to jump start the local economy and create jobs. Now we are being told in that community that it is going to be 2044 at the earliest. Again, 500 people are having their jobs threatened. So I have a few questions for you, Ms. Wassmer, as you take on this job. Thanks to some language that my colleague, Senator Alexander, got into the Appropriations bill when the House side did in the CR, we were able to keep employment levels at their current level. In other words, not have these warn notices be implemented. Again, Congress seems to have to step in every year and provide this last minute help. That is not the way to run a railroad. It is certainly not the way to run people's lives. So very quickly if you could just give me a yes or no on this, the Secretary committed to me a couple of weeks ago that he would advocate for additional funding for the cleanup and the long-term spending package. Would you support the Secretary's efforts to secure this additional funding in the Piketon cleanup so that after December 11th, for the longer- term package, that the people at that plant know they are going to have a job? Yes or no? Ms. Wassmer. Thank you, Senator, for your question. I do understand the importance of Portsmouth in relation to our national defense, and I do also understand during the CR period that the Department has committed to ensure that there are no involuntary left layoffs. Senator Portman. I have limited time, so I need a yes or a no on the long-term cleanup. Ms. Wassmer. Sir, absolutely, we will have the---- Senator Portman. For the long time CR, yes or no. Ms. Wassmer. I am committed to ensuring if I am confirmed that we would have long-term cleanup at the Portsmouth site. Senator Portman. And that for the long-term CR, in other words, after December 11th, that you would support the funding in there to keep these people from losing their jobs. Ms. Wassmer. Sir, I---- Senator Portman. This is what the Secretary told me that he was going to advocate for. Ms. Wassmer. Sir, if the Secretary has shared that with you, if I am confirmed, I will support, absolutely, his direction and guidance---- Senator Portman. Every year you guys put in your budget inadequate funding for the cleanup. You were $80 million short last time. My question for you is very simple. Are you going to advocate this year to be sure the cleanup levels in the FY'17 budget request are adequate to keep the layoffs from happening and to keep the cleanup on pace at least to the level it is at now? Yes or no? Ms. Wassmer. Sir, if I am confirmed I would be happy to work with you on this issue. Senator Portman. Okay. I would say to that question, you would be happy to work with me, when I supported Secretary Moniz in his confirmation. He made that same commitment. When I supported the Deputy Secretary, Sherwood Randall, I got that commitment. The Assistant Secretary, Regalbuto, I got that commitment, the Head of the Office of Environmental Management. All during their confirmation hearings they made assurances they would work with me. They said those same words, and they have not. So we need to see that follow through. And you know, frankly, I am not much in the mood to do other confirmations until I get real commitments on this. Mr. Kotek, you and I have talked about some of these issues before. I am sure and I know you have a great background in the nuclear area and I appreciate what you said about nuclear power and its importance, but I would just ask you one simple question about the new technology which is ACP technology. We had 120 centrifuges that are spinning out there. Suddenly DOE surprises us all, as you know, a few weeks ago and says we are going to pull the plug on this after many indications the opposite would be true, not providing us the report that was due to Congress in April to defend that. We got that report the night before the hearing when Secretary Moniz was here. Do you believe that we do need to have a domestic source of enriched uranium? Mr. Kotek. Thank you, Senator, for the question. Of course, the availability of uranium to meet our nuclear energy needs in the U.S. is very important to my organization of the future of nuclear technology. The specifics of the ACP project in the uranium enrichment program in DOE actually falls into a different organization, so I am not familiar with the specifics of the report you referred to or other things. But I certainly would be pleased to work with you, if confirmed, to ensure that we have got uranium available to meet present and future needs here in the U.S. Senator Portman. Your predecessor was very involved in this, so I hope that you will be as well. And to the extent you believe in nuclear power as you said earlier, I would certainly hope you would believe that we ought to have a domestic source of enriched uranium and not be dependent on the Russians and others for our enriched uranium. Can you make that commitment today? Mr. Kotek. Yes, sir. Thank you for the statement. I agree that we need to ensure that we have got availability of domestic enriched uranium going forward. Senator Portman. Thank you, Madam Chairman. The Chairman. Senator Heinrich is next on the list. Senator Heinrich. Thank you, Madam Chair. Ms. Wassmer, DOE's Office of Management and Performance is responsible for the very important work of cleanup and disposal of defense nuclear waste including work in New Mexico at Los Alamos National Labs, obviously, and the Waste Isolation Pilot Plant (WIPP) in Carlsbad. WIPP, as you know, is the nation's only deep geological repository for defense transuranic waste. So first, I would just say that I would invite you to visit WIPP once you are confirmed. I know that reopening that facility remains a very high priority for Secretary Moniz; however, I hope you agree that the safety of the workers and the surrounding community has to be our top priority as that process moves forward. DOE's recent internal assessment of trends in safety showed continuing problems with senior management's attention to the conduct of operation, maintenance and safety culture. The review cited schedule pressure as an underlying causal factor in that report. How do you see your responsibilities in overseeing WIPP's recovery as a site and how would you refocus efforts to restore safe operations and a safety culture at that facility? Ms. Wassmer. Thank you, Senator, for your question related to the WIPP facility. I have had background briefings and understand at a high level both the unique role in being the first operating repository there, but also the current stoppage in relation to the incidents that you referred to and the importance in ensuring safely the expeditious return of that facility. And so, if I am confirmed, I can share with you I would get up to speed with the details, would be very interested in visiting the site and making sure that we have the safe return of services at WIPP. Senator Heinrich. I look forward to that. I will say that we are all eager to see that facility reopened, to see the staff there get back to work, but we need to do it in a way that puts their workplace safety, at the absolute top of the priority list. Dr. Murray, I want to ask you a question. The Commission to review the effectiveness of DOE's national laboratories released its draft final report last month, and one of the Commission's recommendations that I was very heartened by is that all DOE programs and laboratories fully embrace technology transition and that mission and continue improving the speed and effectiveness of collaborations with the private sector. I thought that was a fantastic development. It is something a number of us have been trying to move forward for some time. I just wanted to ask you if you agree that technology transfer is an important, central part of the overall mission of the national laboratories and what do you think DOE can do to address the challenges that small businesses have in finding constructive and straight forward ways to engage with the labs to commercialize those innovative technologies? Dr. Murray. So thank you, Senator, for the question. I am, myself, from my background at Bell Labs, very, very interested in technology transfer. And if confirmed, I will work with the Department to help a better technology transfer. One of the things that I learned while I was at Bell Labs is that the best technology transfer is with two feet. It's really people. So one of the things I have been thinking about that would help the national labs work better with small businesses, startups in particular, is to have post docs at the labs transition to the startups. This works really well in universities. It's not really practiced except by accident at the DOE national labs now, and it gets around a lot of the difficulties in intellectual property and in making the agreements with very small companies and the national labs work well. The other thing that I will point out that I was very pleased to discover as a member of the Commission and having been away from the national labs for a while was that several of the national labs are starting what I will call a best practice of providing an umbrella agreement for small business in their vicinity. So small business can sign up, they can get a voucher and make use of the lab with very little, three month, negotiation of contracts which has to get better. I absolutely am on it, if I be confirmed. Senator Heinrich. I very much appreciate your reference to the voucher approach. I think that is one of the best practices. It is something that I have included in tech transfer legislation. I know Sandia National Laboratories does something similar to what you were mentioning called entrepreneurial leave that has been very effective. We need to figure out those places around the country where things are working and standardize them more across the complex. I think one additional place that I would encourage you to look is by simply looking at the concept of creating sort of a front door that is outside the gate, literally, a space with these labs where small business can engage directly with the labs without going through all the steps that it takes to go behind the gate for the first time. Dr. Murray. Yes, thank you, Senator. I completely agree that is a very good practice, and Lawrence Livermore Laboratory has done that. Senator Heinrich. Thank you. The Chairman. Thank you, Senator. Senator Flake? Senator Flake. Thank you. Ms. Sarri, as you know in 2013 we had a shutdown, a government shutdown that affected a lot of states, particularly the parks. Six states provided a combined $2 million to keep some of the national parks open during that time. When the Federal Government reopened the Park Service, Department of the Interior was reimbursed then made whole, but the states that provided the money have not seen that money reimbursed. I believe that you have stated your opposition to that reimbursement. Is that correct? Ms. Sarri. Senator, I appreciate that you brought that up when we had a courtesy meeting, and I wanted to make sure I went back and fully understood the Administration's position. And my understanding is if Congress enacts that legislation we would want to work with this Committee and obviously with the parks and the states to offer that reimbursement. Senator Flake. So your position is different now? Ms. Sarri. Yes, Senator, it is. Senator Flake. Okay, that is good to know. That was passed here on a bipartisan basis twice by voice vote, and the legislation was sponsored on a bipartisan basis by Senator Heinrich, myself and others, to make sure that the states were reimbursed. I am glad to hear that. Let me go for one issue. Just last week the Office of Inspector General issued a report finding that the National Park Service (NPS) was improperly using a construction account to fund reimbursable activities performed under interagency agreements. In its report the OIG said that NPS is using the construction account to pay non-construction expenses and treating its account as if it were a revolving fund. The report further states that NPS disagrees, arguing that it has authority to use the construction account as a ``convenient method to fund reimbursable expenses.'' In your capacity as Principle Deputy Secretary, Assistant Secretary for Policy and Management and Budget, did you provide an analysis of the Park Service's use for its construction account and do you believe that this is a proper use of funds? Ms. Sarri. Senator, thank you very much for the question. I'm actually not familiar about this particular issue. I don't think we provided analysis at the departmental level, so I would like to get back to you more on the record on that one. Senator Flake. Okay. Ms. Kendall, do you have anything to share on that? Is that the issue that we discussed in my office or? Ms. Kendall. Simply that we, quite vehemently, disagree with the Park Service's position on that expenditure and hope that we'll be able to resolve it either through the appropriations folks, in this body and the House, or that they will stop utilizing that fund for that purpose. Senator Flake. Okay. Ms. Sarri, will you commit to getting back to my office on that? Ms. Sarri. Absolutely. Senator Flake. Thank you, I appreciate that. One other thing, Ms. Wassmer, we have heard from some in Arizona about the cost containment concerns with WAPA. Can you commit to work with us to address some of these concerns that have been raised in terms of cost containment? Ms. Wassmer. Thank you, Senator, for the question. If confirmed, I commit to looking into the details related to WAPA as you have referenced. Senator Flake. Okay, thank you. Thank you, Madam Chair. The Chairman. Senator Manchin? Senator Manchin. Thank you, Madam Chair. Dr. Kimball, in March 2011 I submitted a letter along with Senators Barrasso and Paul to then Chairman Bingaman and then Ranking Member Murkowski of this Committee seeking an oversight hearing concerning the Office of Surface Mining's proposed stream protection or the stream buffer rule. There was evidence that the DOI management in 2010 tried to discard a contractor's economic analysis of this rule that suggested up to 29,000 coal jobs could be lost nationwide as a result of these proposed regulations. The Department of the Interior management also threatened to fire the contractor. Our letter to the Committee stated independent, scientific analysis of proposed regulations must remain objective and free from political pressure. Five years later the nation's coal industry continues to struggle. We have lost that many jobs, if not more, the serious economic consequences that would be associated with the latest version of this rule. I have also seen general reports that your office has been under immense pressure from this Administration to provide more favorable numbers and ignore the conduct that occurred in 2010. Can you comment on these claims? Do you have knowledge of these? Ms. Kendall. I do, generally, I have knowledge of what we investigated that was relative to the political allegation of political influence. Senator Manchin. They seem to be very upset about the contractor that you all threatened to fire because they put out the facts. Ms. Kendall. My recollection and I would ask if I could get back to you. Senator Manchin. Sure. Ms. Kendall. With more details. Senator Manchin. I would like that. Ms. Kendall. Our investigation determined that the contractor was not improperly terminated, that the appearance looked like---- Senator Manchin. Let me followup with one okay? Ms. Kendall. Sure. Senator Manchin. Because you can get back to me on the accuracy of that. Ms. Kendall. Okay. Senator Manchin. Whether he was fired or not and what but can you comment on the pressures from this Administration has been exerted regarding the thousands of projected job losses? Ms. Kendall. I had no involvement in that, sir. Senator Manchin. Okay. Well, if you can, I really need to know about this because it is really disturbing. Our state is really getting plummeted by this, and it is just ridiculous. If a person is putting out the facts as they see them and if they do them and then you do not like the results and there is someone making those decisions to get rid of these people because they are not giving the answers they want, then we need to know about that. Ms. Kendall. Understood. Senator Manchin. Now, Dr. Kimball, can you comment on the extent of and the reasons for the dramatic rising estimates of the U.S. shale gas resources over the last few years? The reason I ask this question is, we are making decisions, we will be, on exporting LNG and different things and also our potential economic vitality from this resurgence, if you will, if we use it for manufacturing. And do we have the reserves? And why have they not been accurate on their estimates? Dr. Kimball. Well thank you for that question. There are two reasons that have affected the estimates of our shale gas resources. One is that through the years there are increasing numbers of surveys of subsurface conditions both by USGS, by state geological surveys and by industry. And so that helps us understand the full breadth of resources across the nation. The second is that our analyses and our assessments are directed toward technically recoverable resources at the time that the assessment is done, and technology has been increasingly effective in being able to extract these resources. And as technology evolves more and more of the resource becomes available for extraction. Senator Manchin. Well, my followup question is how do you all manage to stay on top of the estimates of the technically recoverable gas? If we are wanting to know how much that we can, not what we have, but what we can recover to market? Dr. Kimball. We're fortunate to have very close working relationships with other Federal agencies, Department of Energy for one, in this regard and with industry. And we have developed a good working relationship with industry in terms of protecting proprietary information and yet being able to use that information to improve our assessments. Senator Manchin. So if we are making determinations on our votes on different types of energy topics would you say your estimates are conservative? I mean if we are using your estimates would they be on the conservative side or maybe on the liberal side? Dr. Kimball. I actually don't have an answer for that. I would say that we tend to provide estimates that are conservative, but that doesn't mean that each and every estimate that we do falls in that category. Senator Manchin. This find is very unusual, this Marcellus shale and the Utica shale and now we have Rogersville and all this coming on in our little state of West Virginia. It is so much energy coming on the scene here, and we never saw that coming. You all did not see it coming either, I don't think. Dr. Kimball. No, I don't think that we were, not USGS, but as a nation prepared to fully understand the extent of those resources and the capability of technology to extract them. Senator Manchin. Is there anything else out there we might have under our feet that we do not know about that could really give us another boost? Dr. Kimball. Probably, but I couldn't tell you what it was today. Senator Manchin. Thank you. The Chairman. Thank you, Senator Manchin. Senator Lee? Senator Lee. Thank you, Madam Chairman. Thanks to all of you for being here and for all you do for our country. Ms. Kendall, I have a few questions for you. It appears based on a review of publicly available records on the OIG website that the OIG under your leadership has not undertaken a comprehensive review or investigation of the Endangered Species Act program including a review of the circumstances surrounding the 2011 settlement, the so-called mega settlement, between Fish and Wildlife Service and a number of environmental activist organizations. Can you tell me why your office has not looked into the listing and delisting process in general or into the decisions that were made in connection with the 2011 mega settlement? Ms. Kendall. The settlement question has come up before, Senator. And quite frankly, we asked, it was in another hearing, if there were specific concerns about issues in that settlement and have not been advised that there are specific concerns. We did not look at the settlement. We have not been asked to look at the settlement and are not aware of issues, other than the usual issues involved in endangered species decisions which are always controversial. Senator Lee. Right. Well I would assume even in the absence of a request from Congress or someone else that you would look into something involving periodic review listing decisions just to see how they are made and to see whether they are being made according to the appropriate statutory standards? Ms. Kendall. Not necessarily. If we have information to suggest that they are not being properly made we would, of course, look into them. But we have not received any of that sort of allegation for a good number of years. Senator Lee. Okay, Okay. So generally you would not reach out to do that absent some kind of allegation of mismanagement or malfeasance in connection with a listing or delisting decision? Ms. Kendall. Correct. Senator Lee. And you have not received any of those? Ms. Kendall. We have not. Senator Lee. Okay. Now concerns have been raised, including in a 2014 congressional investigation, about possible conflicts of interest and lack of transparency in connection with the peer review process that is used to justify ESA listing decisions. For example, it is my understanding that the Fish and Wildlife Service (FWS) has a policy dating all the way back to 1994 requiring FWS to seek the expert opinions of ``independent specialists'' for its listing decisions and also for its recovery plans. It is also my understanding that the Fish and Wildlife Service regularly seeks out the same scientists whose work they are relying on to serve as peer reviewers such that, in effect, they are being, in many cases, asked to, kind of, review their own work. It seems to me that might possibly be less than independent. Would you share that concern? Ms. Kendall. I'm not familiar with this issue, Senator. I would certainly be glad to learn more from you and your staff and let you know if it's something that we think we should look into. Senator Lee. Okay, great. We would be happy to share our concerns at a staff level and see if we can get to the bottom of that and see if we can get that question answered. Do you have any concerns with the FWS using peer reviewers, the very same scientists whose work they rely on to justify their listing decisions? I mean, assuming that is happening, would that concern you? Ms. Kendall. What you're saying may be of concern. It's hard to apply theoretically. It would also be a matter of how many scientists there actually are for a given area of expertise. So, I really can't opine on a theoretical. Senator Lee. Right, right. So in some instances that might happen if it is a very narrow subspecialty and there are a limited number of scientists? Ms. Kendall. I can only surmise that that's a possibility. Senator Lee. Okay. One listing I do want to bring to your attention involves the Gierisch Mallow, a small flowering plant that is found in Utah. In its 2013 listing decision for this species the Fish and Wildlife Service said that the peer reviewers generally concurred with their methods and their conclusions. However, to my knowledge the only publicly available comment in the record for this listing is that attributable to a peer reviewer from a Dr. Lee Hughes. That opinion, as I understand it, says that a listing was prompted by the mega settlement lawsuit in 2011 and is not well thought out based on that scientist's 20 years as a BLM scientist. Are you familiar with that? Ms. Kendall. I am not. Senator Lee. Okay. I assume, you would agree that based on that fact pattern if the facts as I understand them are correct, that might warrant further scrutiny? Ms. Kendall. Again, I would be very happy to work with your staff for more detail on that. Senator Lee. Okay, out I would assume you would see a problem with the Fish and Wildlife Service stating that peer reviewers generally agreed with their listing decision on the one hand, but then finding that comments from the only identified peer reviewer found in the record actually contradict that decision. Ms. Kendall. Again, theoretically that sounds like a potential problem but I have no knowledge about the issue. Senator Lee. Okay. Fish and Wildlife's decisions whether to list a species have, as you can appreciate, an enormous impact on the people who live and work near that species, near where that species is found. Do you have any concerns with the peer reviewers comment that the listing was done to satisfy a lawsuit and was done, that it was not ``well thought out?'' Ms. Kendall. Again, it sounds potentially problematic but I have no knowledge about the underlying issue. Senator Lee. Yes, okay. Well I assure you that it is, in fact, problematic. And unless my understanding of the facts is somehow incorrect, unless I am somehow mistaken, I would think that the fact pattern that I have described is not just potentially problematic but very problematic. Now, I hope I am wrong. I hope you can come back to me and say, look, you have been misinformed and you do not have anything to worry about. But if in fact these facts as I have described them are true, I would assume that you would at least be willing to look into them and to address the problem that they would create. Ms. Kendall. Yes, sir. Senator Lee. Okay, thank you very much. Thank you, Madam Chair. The Chairman. Thank you, Senator Lee. Senator King? Senator King. Thank you, Madam Chair. I would like to address a brief comment to Ms. Kendall, Ms. Wassmer and Ms. Sarri. There is an important poll that came out this morning in the Presidential race, and it found that Mr. Trump and Dr. Carson had 49 percent of the support in the Republican Party. The reason I think that is significant is that neither one of them have any experience, whatsoever, in government and a big part of their appeal to the public is a distrust of government. The fact that outsiders are doing so well this year, it seems to me, is something we should think about in terms of the relationship of government to the American people. That makes the role of the Inspectors General and the management folks doubly important because we have to regain. I am not making a political statement here. I am just saying we need to recognize that in many instances we have lost the trust of the American people as an institution. You all are in a particularly important role to try to rebuild that trust in terms of investigating and dealing with issues of malfeasance and misfeasance and also in terms of managing the taxpayer's money effectively. There is not a question here, but I just want to emphasize I consider the positions that you have been nominated to be incredibly important because of the underlying issue of trust of our democratic system and our ability for the government which is quite large to be able to effectively meet the needs of the American people. I was struck by the fact that the two leading contenders for President in one of our major parties are both outsiders in that sense. I am not saying that is good or bad, but I think it reflects this underlying concern the government is not accountable and is not responsive. So these are very important responsibilities, and I just wanted to emphasize that. To go from that rather abstract level to some specifics. Ms. Kimball, you mentioned the 3D elevation program that you are doing. I have had some interaction on that program with a company in Maine, Kappa Mapping. I believe it is a very important program that is very useful, and I think will become more useful in the future. I hope that is one that you will continue. Again, on the science as we deal with these difficult issues, and Senator Manchin was asking you questions about how much gas is there and all of those kinds of things, we can only make good decisions here if we have good science and good data. It is absolutely crucial that you keep, you are one of the leading science people in the government, that you keep providing us with as good, clear, unpoliticized data as you possibly can. I assume that is your commitment. Dr. Kimball. Thank you, Senator. It's absolutely my commitment. If confirmed I can also guarantee that it is the commitment of all of the men and women of USGS to do just that. As for the 3D elevation program, it is one of our priorities. We see the good elevation data is absolutely a foundation for understanding a lot of the other scientific issues that we face today whether that's landslides and debris flows or whether that's riparian systems and flood systems. Having that information is essential. Senator King. And appropriateness for development. Dr. Kimball. Absolutely. Senator King. Crucial information. Well, thank you. Dr. Kimball. Yes, sir. Senator King. Mr. Kotek, by the way, I was impressed that you all brought your families. I think if I had to appear before a Congressional Committee, I would want my family as far away as possible. [Laughter.] It is wonderful that you did that. Mr. Kotek, we are sort of turning the page on high level nuclear waste and going to looking at consolidated interim storage with consent. Number one, I think it is important to realize that we have high level nuclear storage sites in this country today. So it is not a question of whether there will be some, it is a question of where they are. We have one in Maine where the Maine Yankee plant closed about a dozen years ago, and we have a high level nuclear storage site. I think you have been there. So my question is, as we are looking at this, sort of, new option, what is the timing? Is this another 25 years or are we talking about something that could happen within the reasonably foreseeable future? Mr. Kotek. Thank you, Senator, for the question. Yes indeed, I've been to the site to which you're referring and was struck by the fact that at that beautiful piece of property you've got spent fuel being, you know, guarded, protected, and everything else is gone from the reactor. And that was one of the things that I think really struck the members of the Blue Ribbon Commission when the Commission paid a visit. With respect to timing the Administration put out a strategy back in 2013 that at the time forecast about eight years to get to what we call the pilot interim storage facility, about 12 years to get to a full scale interim storage facility. And then set a year of 2048 for ultimately a repository. So, you know, I think in the not too distant future, given the appropriate appropriations and authorizations from the Congress, we'd be in a position to move out with development of the site using the consent-based process to which you refer. And if confirmed I look forward to working with you on that. Senator King. I will be 104 in 2048. I wish you could do it a little bit sooner than that. I would love to see that Maine Yankee site eliminated. And, you know, Eisenhower retook Europe in 11 months. Mr. Kotek. I should add to that point, sir, that in terms of setting priorities for moving fuel the Administration's strategy places top priority on dealing with fuel at the shut down plant sites such as Maine Yankee to go first to interim storage. So I would think that we would be able to move forward. Senator King. Thank you. Thank you, Madam Chair. The Chairman. Senator Hoeven? Senator Hoeven. Thank you, Madam Chairman. Thanks to all of our witnesses for being here today. I would like to start with Dr. Kimball. In May 2011 I asked then Secretary of Interior, Ken Salazar, to update the U.S. Geological Survey's 2000 estimate of the reserves, recoverable oil reserves in the Williston Basin. The USGS worked for about 19 months to complete that update and revise its findings of the Bakken reserves, recoverable oil reserves in the Williston Basin, and of course, increased their estimate very, very significantly. That was very important both in terms of stimulating drilling activity further or additional drilling activity in the Basin as well as helping us encourage and in fact get the infrastructure development that we needed as part of that energy development, that energy--that oil play. My first question is do you have plans to, I think now we replace about 1.2 million barrels of oil a day and huge amounts of natural gas as well. So my question is do you have plans to update USGS's estimates of the recoverable oil reserves in the Williston Basin? Dr. Kimball. Well, thank you, Senator. And we thank you because you were instrumental in bringing all the people to the table to help us move forward with that last assessment. We periodically review and update our assessments. I do not know, right now, what the timeframe is to review that assessment, but I will find that information out and provide it to you. Senator Hoeven. Okay, and then would you be willing to work with me? USGS has been very responsive and very good on this, so I would ask that you work with us to plan out the next update because it is very important as we continue to develop the Bakken, particularly now, with some of the competitive pressures that we face. Dr. Kimball. Yes, sir. I would be very happy, if confirmed, to continue working with you to make sure that we have the assessments updated as needed. Senator Hoeven. Thank you, Dr. Kimball. I appreciate that. I would like to turn to Principle Deputy Assistant Secretary Sarri, welcome. In March 2015 the Bureau of Land Management, which of course falls under the Department of the Interior, issued final regulations for hydraulic fracturing on Federal and Indian land. There are 27 states that produce virtually all of the oil and gas in this country, and those 27 states have regulations that oversee hydraulic fracturing. The BLM rule duplicates those efforts with a second layer of regulation. U.S. District Judge Skavdahl in Federal District Court in the State of Wyoming has issued a preliminary injunction in regard to that regulation. I am going to read a quote from his decision in issuing that preliminary injunction, ``Congress has not authorized or delegated to the BLM authority to regulate hydraulic fracturing and under our constitutional structure it is only through Congressional action that the BLM can acquire this authority.'' So my question to you is both as Principle Deputy Assistant Secretary and now as nominee to be Assistant Secretary, what does that court ruling say about the policies that are being advanced under your tenure? Ms. Sarri. Senator, thank you very much for the question. I'm aware of the regulations. I wasn't directly involved in those so I maybe have higher level comments and I'm happy to get back to you with more information on the record, if that's helpful. Ms. Sarri. What I think BLM was attempting to do was provide standardization and a level playing field with a greater regulatory certainty around hydraulic fracturing. Obviously we have to have authority for the work that we're doing when we undertake regulations, and so we look to that as part of our regulatory process. Senator Hoeven. Why is it necessary to have duplicate regulations? Why not work with the states that already have those regulations in place? We do that in many other aspects of energy oversight and regulation. That is why we have SIPs, State Implementation Plans, when we work with Federal agencies. We use the practices that you have identified. Why have the duplicate regulation? Ms. Sarri. I think the effort here was where states had stronger regulations in place that we would look at those. But to actually set, kind of, a baseline or bottom line that would govern fracking across all states was the effort here. Senator Hoeven. There is not an industry sector I talked to, we could take energy, we could take agriculture, we could take manufacturing, we could take high tech, we could take financial services--there is not one single industry sector that I talked to that does not come in and they say they are absolutely mired in red tape and regulation and bureaucracy which adds tremendous cost and makes it more difficult to create jobs. So my question to you is why not work with the states in a primary role? They are already providing this regulation. And then if some state is not or does not want to oversee it properly then you could come in and provide that regulatory structure. Why not take that approach rather than duplicate regulation? And this goes to some of the comments that Senator King just made. Ms. Sarri. Okay. No, I appreciate that. So let me get back to you more specifics on hydraulic fracking. But overall let me just say about the regulatory approach. This Administration has been trying to do a regulatory look back across all of the departments of the Executive branch to get rid of duplicative and outdated regulations. It's an important part of our regulatory agenda. I think you're right. When you're looking at regulations you have to look at what states have and what the state role is and what the state has in play and the also what the Federal role is. And if it is something that crosses off in multiple state boundaries whether you actually need to have, kind of, a consistency that is, what is a baseline for regulations of which then the states can buildupon more. I actually think that that can create great certainty in the economy as well. Senator Hoeven. Earlier you said that the Department was willing to look at working with states that have a regulatory regime in place so that perhaps we could eliminate this double layer of bureaucracy. Are you willing to commit, if confirmed, that you would work with us on that approach? Ms. Sarri. Senator, if I'm confirmed, I would be willing to work with you and I'd also be willing, obviously, to sit down and talk with BLM on these particular issues. Senator Hoeven. Okay. Thank you very much. The Chairman. Thank you, Senator Hoeven. Senator Hirono, you have been very patient. Senator Hirono. Finally. [Laughter.] Save the best for last. Mr. Kotek, I could not help but note that you were born in Hawaii but that you consider Idaho your home. We in Hawaii like to think that anybody who has experienced Hawaii takes with them the Aloha spirit wherever they consider home. Lucky for you I do not have a question for you. [Laughter.] Anyway, Dr. Murray, as a supporter of the ability of small businesses to interact with the labs and to enhance the technology transfer aspects of what goes on at the labs, I am glad that your responses to Senator Heinrich's questions in this arena was one of commitment to that proposition. So I encourage you to continue with those efforts. For Dr. Kimball, thank you very much for USGS and their very important role in tracking the lava flow on the Big Island that was threatening one of our communities. We are very appreciative of what you all do. Thank you also for the opportunity to chat with you recently in my office. I am aware that the Department of the Interior, through the USGS, serves as the lead agency in the Federal Open Water Data Initiative. And as we know from the unfortunate drought that is plaguing California and the West, awareness of water availability, use, conservation, etcetera will become increasingly important in the future and of course, that also applies to Hawaii. As USGS works to collect data to supply the Open Water Data Initiatives and other future initiatives such as predictive modeling and comprehensive decision support tools that will help communities be responsible water users, can you highlight some of the ways that Congress can help USGS in completing these kinds of water initiatives? Dr. Kimball. Well thank you very much for that question, and I did appreciate the opportunity to speak with you about these issues as they affect the Hawaii and the Pacific Islands. I think that issues associated with water resources and water availability are national issues that are important, and I believe that the only way we can effectively address those issues is to bring all sectors of both government, industry and local and community efforts together so that we have the authorizations that allow us to collect the information and that we have the good working relationships with local and community groups that permit that exchange of information and the ability to enhance our surveys. One of the things that we've been working with that we believe has a great deal of potential is the concept of citizen science and bringing those communities that are dependent on this information into the dialog. And we really welcome the opportunity. And if confirmed, I would very much welcome the opportunity to work with you and the Committee to identify ways to enhance the water data collection, monitoring and dissemination efforts across the country. Senator Hirono. Thank you very much because this, as in so many other areas, requires a lot of collaboration at all levels including, as you say, the citizens, citizen scientists. I think that was your reference. That sounds really interesting. If there are things the Committee can do to enhance and support those collaborative efforts I certainly would want to discuss those with you. For Ms. Sarri, in your testimony you mention PMB's role in coordinating across businesses on policy issues such as invasive species management. I think you are aware that Hawaii is practically, maybe, the invasive species capital of the country because the impact, the negative impacts of invasive species is something that we totally understand. In March of this year the Department of Navy released a regional biosecurity plan for Micronesia and Hawaii that makes recommendations to the State of Hawaii, Guam, CNMI, Micronesia and the Marshall Islands as well as Palau. So this requires a lot of collaboration among the Departments of Defense, Agriculture, and Interior. The purpose of the report is to be used as a tool in coordinating across agencies to prevent, manage and control invasive species in the Pacific region which is a huge region. Question. Since the Department of the Interior serves as one of the 13 Federal departments and agency members of the National Invasive Species Council can you speak a bit on how you, as Assistant Secretary for PMB, would work within your Department to implement or help the jurisdictions implement some of the priority recommendations of the Navy's report? Ms. Sarri. Senator, thank you very much for your question. If confirmed, I would be definitely working very closely. Interior happens to be one of the leads of the National Invasive Species Council. We've been working very closely with Agriculture and with NOAA to, kind of, reinvigorate, I would say, the Council. And the issues that you raise and issues particularly on what's taking place in the Pacific are very important to prevent invasive species from coming into areas of the Pacific. But when they do get there, early detection and rapid response is absolutely critical. So at Interior we've been making additional investments in terms of looking at early detection and rapid response issues, prevention and education. I would anticipate, especially as we lead up to the World Conservation Congress, that the issue around invasive species and biosecurity in the Pacific are going to be a central issue. Senator Hirono. Thank you. Thank you, Madam Chair. The Chairman. Thank you, Senator Hirono. Senator Barrasso? Senator Barrasso. Thank you, Madam Chairman. Ms. Kendall, I would like to ask you about a report that your office, the Office of Inspector General, issued on the Office of Surface Mining's ongoing stream buffer zone rulemaking. For years Members of Congress have expressed grave concerns about this rulemaking. Prior to the issuance of your report the House held a number of hearings which examined the rulemaking including the jobs that would be lost as a result of the rule. A redacted copy of the report indicates that your office completed the report on February 28th of 2013, but your office did not release the report to the public or to Congress until December 20th of 2013, 10 months after your department completed the report. So you completed it, and then we waited 10 months until you released it on December 20th. Now I would note that December 20th was the Friday right before Christmas. It was also three days after this Committee held a confirmation hearing on Janice Schneider. She was nominated to oversee the very office under investigation, the Office of Surface Mining. So you waited ten months and then you released it the Friday before Christmas, three days after the Committee held the confirmation hearing so we could not ask questions about it. The question is should it have occurred to you, since you are up front now for a position and confirmation, shouldn't it have occurred to you that the Senate and the public had an interest in seeing your report prior to Ms. Schneider's confirmation hearing and in any case, why did you wait to release the report until three days later? Ms. Kendall. Senator, I am almost embarrassed to say it. I don't recall the details of that delay, and I simply can't answer your question because I don't know. But I would be happy to get back to you on that. It sounds wrong. I would hope that there's a meaningful explanation. I'm sorry I don't have it here today. Senator Barrasso. Because I think to people that look at this it certainly seems like you are playing games with Congress. So I would love to hear back from you on that. I understand you did provide a copy of the report to the Principal Deputy Assistant Secretary for Lands and Mineral Management. I am also going to ask that you look into whether prior to December 20th you shared the report or any information related to the report with anyone else outside the Office of the Inspector General and if so, with whom? I will ask that you followup in writing. Ms. Kendall. I will do that. Senator Barrasso. Thank you. Senator Barrasso. Mr. Kotek, before joining the Department of Energy earlier this year you worked as a Strategic Consultant for the Fluor Corporation. Since 2011 the Department has given Fluor about $1 billion worth of publicly-owned uranium from its stockpile of excess uranium. In exchange Fluor has provided decommissioning services at the Department's gaseous diffusion plant in Ohio. The Government Accountability Office has said that these transactions violate Federal law, so I question whether the Department receives full evaluation for the uranium that it gives to this company. If confirmed, you will be responsible for overseeing the public's stockpile of excess uranium. You will play a significant role in determining the circumstances and conditions under which the Department disposes of excess uranium. Given your past employment by this corporation do you plan to recuse yourself from decisions that would benefit this corporation and if not, why not? Mr. Kotek. Thank you, sir, for the question. Regarding my specific involvement it had to do with a cleanup contract at the State of Idaho, within the State of Idaho. Regarding a specific recusal those matters are still under discussion within the Department right now and we'd be happy to get back to you when there's some determination made there. Senator Barrasso. So it's your position that you do not have a conflict of interest with respect to the decisions affecting the corporation? Mr. Kotek. Thank you, sir. I have been and will continue to be completely forthcoming with the experts in the Department who makes those determinations so they can give me the appropriate guidance. Senator Barrasso. Because I question whether the Department actually has received full value for the uranium that it gives to the corporation. The corporation did not consume the uranium that it receives from the Department, instead it sells the uranium, as you know, to another party. Earlier this year I called on the Department to condition all future transfers of uranium on the requirement that the company publicly disclose the terms under which it sells the uranium. If confirmed would you be willing to do that? Mr. Kotek. Thank you, sir, for the question. My understanding of the process is that, you know, DOE structures its uranium transfers in a manner that results in a fair market value price for the uranium. Of course, as you've referred, the transfers to Fluor B and W are exchanged for services and the value of the services that DOE receives are based on prevailing market prices at that time and that DOE is immediately credited with the value and services by the contractor. So that's the process, as I understand it. And going forward we'd be happy to continue to work with you and your staff on that matter. Senator Barrasso. Do you think it is an unreasonable request, given your past employment by the Fluor Corporation? Mr. Kotek. Sir, again, I think, given my particular situation I will work with Ethics Council inside the Department to understand where, you know, those things I should and should not be involved in and will proceed accordingly. Senator Barrasso. Thank you, Madam Chairman. The Chairman. Thank you, Senator Barrasso. Ms. Kimball, I want to come to you for a moment. I thank you for joining us in Alaska. It was some time in August, I forget when, but we were actually celebrating the fact that over half of the State of Alaska had been mapped through the IfSAR data. I your written testimony you state more than 63 percent of the state has been mapped appropriately. I think at that time we were celebrating 53 or 57 percent. I do not know exactly, but I commented at the time that there are very few places in the country where we would be celebrating getting half way there. I think it speaks to the issue that we face in Alaska as it relates to the adequacy of our mapping and the need to get going yesterday. Thank you for your efforts to work with us. I know we have many in the state that appreciate that, but we also recognize that we have a ways to go, so I want to work with you to do that. Last year USGS announced that Afghanistan was the first country to be almost completely mapped using hyper spectral imaging data. Of course that gets your attention when we here in this country are trying to get ourselves mapped and we see that our government is supporting the full mapping of Afghanistan--almost completely mapped. Can you tell me what the status of collecting the hyperspectral data is here in this country and where we are with the status of LIDAR or Landsat eight and nine data in the United States and in Alaska, specifically? Dr. Kimball. Well, thank you for that question. It was quite an honor to participate in the sky breaking ceremony in Alaska last month. As far as the hyperspectral data goes we were able to map Afghanistan because we had received support from USAID and the Department of Defense to do so as part of the reconstruction efforts, and that allowed us to develop the software and the analytical tools to enable hyperspectral to be used to look at mineral deposits on the surface, within the soil surface, where we don't have surface expression for minerals. So we have now brought that technology home, and we are using it initially in Alaska to map certain areas in order to test that system in the kinds of conditions that we have and to address assessments of mineral resources in Alaska which has quite an enormous potential in that regard. The Chairman. So is that underway now? Dr. Kimball. Pardon me? The Chairman. Is that underway now? Dr. Kimball. I believe it has started. I will confirm that. I believe that it has been started. Dr. Kimball. And as we are able to refine those techniques then we will pull that technology out across the country. In terms of LIDAR and Landsat, we now have two Landsat satellites operational, Landsat 7 and Landsat 8. We're working very closely with NASA to move forward in the planning and the execution of the next Landsat mission which will be Landsat 9 that we anticipate having launched somewhere between 2021 and 2023. We are working diligently between the two agencies to ensure that we do not have a data gap. With two satellites in the air we get that information on an eight-day repeat cycle which is very important for many uses especially in the agricultural sector. As far as LIDAR, it continues to be a high priority for us. And you will see that in the Administration proposals to enhance and continue acquisition of LIDAR data to support the 3D elevation program. The Chairman. Thank you, we appreciate your work in that regard. Ms. Sarri, I want to go back to you and followup on your earlier comments. I understand what you said about your not being involved in the decisions that were made by Interior either as it related to Shell or as it related to the announcement about not moving forward on the Shell extensions or also the 2016 and 2017 lease sales. I am perplexed though, and I do not follow why you would not be, I guess. In the Interior's press release they cite to specific items in light of current market conditions, low interest, low industry interest, DOI today announces. We were informed by the Under Secretary that it did not make sense for budgetary and resource reasons to prepare the lease sales. That was what we were told. Given that your position that you have been acting in for Policy, Management and Budget is specific to budgetary and resource purposes, I guess the real question that I have if you have said that you were not involved in these decisions is why were you not involved in these decisions if they were, in fact, related to budgetary and resource reasons? Further, if you will, did your office conduct any form of analysis of the economic impacts that these decisions would have on the State of Alaska whether it be future oil production, whether it be the jobs that would not be created or something else? Ms. Sarri. Well, Senator, as to the Assistant Secretary's remarks I would want to go back and ask her for some clarification. My understanding about the reason the decision was made was the lack of interest in the leases during this time period and then also market forces and the low energy prices. So my understanding is those were the drivers of it. The Chairman. I hope that you understand that lack of industry interest is not lack of interest in the resource. It is lack of interest in dealing with an Administration that has simply made it impossible for them to move forward. That is where the lack of interest is. I think that that needs to be reported back, because the interest is clearly there. But if you cannot meet the terms and conditions that have been set by the Administration for operating, what are you supposed to do? Ms. Sarri. Got it, understand, Senator. But I will get back to you. I think maybe what Secretary Schneider meant in her---- The Chairman. It was, I am sorry, it was not Secretary Schneider. I do not want to get confused here. Ms. Sarri. Okay. I'm sorry. The Chairman. It was Mr. Beaudreau, who---- Ms. Sarri. Oh, Okay, I'm sorry. I must have misunderstood there. I'll go back and take a look at it. I'm assuming what they meant was, you know, where we have shown we're working under a constrained budget. And if the market wasn't at this time necessarily supporting it. And I understand you have a different perspective in terms of that, that issue, then you would look to move some of your budgetary resources to other places. But I will make sure I get clarification and get back to you on the record on that particular question. The Chairman. Are you aware as to whether or not there was any assessment or analysis as to the potential impact? Ms. Sarri. I will also get back to you. There was not any assessment done by my office on this particular issue, but I will ask if there was an assessment done by BOEM or BSEE. The Chairman. Thank you. Senator Cantwell? Senator Cantwell. Thank you, Madam Chair. I wanted to go back to Dr. Murray and ask about DOE's role in advanced materials. Obviously these are very important materials for lightweight manufacturing, whether used in trucks or airplanes. Can you speak to what we need to do to continue U.S. leadership on this issue and what do we need to do in the area of recycling of these materials as well? Dr. Murray. Thank you for the question. Yes, DOE has a major role in materials in the new manufacturing initiative as well as manufacturing for recycle. And if you look at things like 3D printing and what's called materials genomics which is basically looking at the properties of materials and making a data base and then searching the data base in multi-dimensions to figure out which material would actually work better than the one that we have all been using because it just happened to work when we tried it the first time. That is making materials, I will call it science, and materials engineering more into a science than it has been before. It has been very Edisonian so a company will use a material because it knows it works and it just doesn't want to bother because it takes about seven years to move a new material into manufacture. We're trying to shrink that down to, let's just say, three years and to look at the space of materials. And this is being done in the storage hubs that I was talking about earlier which is an Office of Science hub on novel energy storage and batteries. So they're looking at there's an anode. There's a cathode, and there's an electrolyte. And all of these can be, instead of picking one and then trying out others, look at the whole space of what you could do and pick out computationally what might be interesting projects. And then go and study them in the lab. And this is turning out to be quite fruitful. It's only fruitful because we have enough computational power and enough experimental expertise to be able to get the properties of the materials measured accurately enough. Senator Cantwell. Is that where the exascale computing comes in? Dr. Murray. Absolutely, that's exactly right. Senator Cantwell. So we need to do both. Dr. Murray. We need exascale for that reason in particular. And it will be the wonderful thing about exascale, if we can get to the power density, the low power density of new chips for the exascale computing, we will have very small exascale computing will fill this room, of course. We will have very small pedascale computers because you can just carve out a part of it and then you can have one in every hospital or every, for precision medicine or you can have one in R and D plants to do this materials genomics. It really is a revolution. Senator Cantwell. I like that word. How important do you think it is that we fund this research and development in these areas for DOE? Dr. Murray. Well it's spectacularly important. Senator Cantwell. Okay, thank you. And Graphene? Where would you put that? Dr. Murray. Graphene is really a very interesting material. Back when I was doing research at Bell Labs in the 1990's, nobody thought you could get a single layer of carbon. That was totally impossible. When, some years later, people realized that you could put scotch tape on graphite which is well known in battery materials and just pull off a single layer of carbon. And that is the strongest material known to man when you try to pull on it. And that--it's a very interesting conductor. It's not quite a semiconductor, but you can make it into a semiconductor. And it has very interesting physics properties. And it's a little bit hard to deal with. And it's not yet in manufacturing but it has started a new thought process about putting other two dimensional materials together. And this is where coming back into batteries you can create these new two dimensional materials by putting layers together. So it was actually a very important part of material science. Senator Cantwell. Well this shows how important material science is to energy solutions; that has people interested in the Northwest. Dr. Murray. Yes, absolutely. Materials is important to absolutely everything including, I will say, software because you have to run software on something. And that something turns out to be your exascale computer which you can't make unless you can understand the materials properties. Senator Cantwell. Thank you. Thank you, Madam Chair. Dr. Murray. Thank you. The Chairman. Thank you. I have one final question, and this is directed to you, Ms. Kendall. I will have other questions that I will submit for the record to you and others who have appeared before us today, but in the interest of time I will just ask my final one. You have heard comments from colleagues here regarding issues during your tenure, the stream protection rule or stream buffer rule has been mentioned a couple different times. This dispute between your office and the House Committee on Natural Resources persisted through 2014. It included your decision not to respond to a subpoena from the House, and to my knowledge that is still at a stalemate that has not been resolved. Have you taken any steps since formally referring the matter? What have you done in terms of referring this to the Secretary and then, not only what have you done in advancing this to the Secretary's level, but what have you done to assist the House Committee to receive a satisfactory response to this subpoena? Ms. Kendall. Well, as you know, Madam Chairman, last November I sent a memo to the Secretary referring the issue formally to her. Having found really nothing happening a couple weeks ago my counsel reached out to the Office of the Solicitor, with whom we've been working on this issue, urged them to, again, sort of, activate the issue and reconsider their decision to lay claim to privilege, although the word has not been used, as you know. As recently as yesterday I spoke to the Chief of Staff for the Secretary and urged him to ask someone from the Department to actively engage the House Committee on Natural Resources. They had said they had no outstanding request, but I am told that they did reach out, as of yesterday and---- The Chairman. To the House Committee? Ms. Kendall. To the House Committee and we'll be engaging in the process of accommodation which is the precise process that I've been asking both sides to engage in. The Chairman. Thank you for that update. This goes to a series of questions that you and I had discussed when we were visiting in my office in terms of the role, what the law requires of the IG with respect to reports to Congress and whether there is an independent reporting obligation and then again, this independent duty to assist Congress. So again know that these are very important. I was interested in the direction Senator King was taking with his comment there about the polling data on Presidential nominees at this point in time, but I do think he does make a point about the imperative of the various IGs throughout the government that they maintain that level of independence, that they maintain that level of true impartiality here and ensuring that there is a commitment made to the process. That is what we are seeking to, kind of, call out here. You mentioned in your opening statement that hindsight is 20/20 and that there may have been some situations where you may have done something differently or taken a different approach. Can you give me any indication as to which decisions, if any, you would have made differently and why? Ms. Kendall. Yes, I can, Madam Chairman. The one decision that I think has followed me the closest and the hardest was the decision to be willing to be a part of the Safety Oversight Board, in retrospect with the benefit of 20/20 hindsight. Going forward I would do that differently. I think my office could have conducted the very same work that it did conduct without my participation on something like that Board, although it was in extraordinary circumstances and extraordinary times given a national crisis. But that is one, certainly, that I have rethought many times over and think that, although the ends may or may not justify the means, in the end our office did the work that needed to be done to review the entirety of Outer Continental Shelf oil and gas production. And I think my team did a fabulous job, a very comprehensive job and did it very quickly, but we could have done it without my participation in that Board, I believe, going forward. At the time, as I said in my testimony too, I was operating under the best information I had at the time and utilized in my best judgment. But we can always second guess decisions we've made. The Chairman. I appreciate that. Senator Cantwell, any followup? Well, thank you all. I appreciate the time that you have given us, and to the families that have been very patient as you have provided support to the six men and women in front of us, we thank you for being here today. With that, the Committee stands adjourned. Thank you. [Whereupon, at 12:40 p.m. the hearing was adjourned.] APPENDIX MATERIAL SUBMITTED ---------- [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]