[Senate Hearing 115-285] [From the U.S. Government Publishing Office] S. Hrg. 115-285 NOMINATIONS OF BALASH, GLICK, McINTYRE AND NELSON ======================================================================= HEARING BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION To CONSIDER THE NOMINATIONS OF JOSEPH BALASH TO BE ASSISTANT SECRETARY OF THE INTERIOR FOR LAND AND MINERALS MANAGEMENT; RICHARD A. GLICK TO BE A MEMBER OF THE FEDERAL ENERGY REGULATORY COMMISSION; KEVIN J. McINTYRE TO BE A MEMBER OF THE FEDERAL ENERGY REGULATORY COMMISSION; AND RYAN NELSON TO BE SOLICITOR OF THE DEPARTMENT OF THE INTERIOR __________ SEPTEMBER 7, 2017 __________ [GRAPHIC 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.govinfo.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 26-873 WASHINGTON : 2018 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected] 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 CORY GARDNER, Colorado JOE MANCHIN III, West Virginia LAMAR ALEXANDER, Tennessee MARTIN HEINRICH, New Mexico JOHN HOEVEN, North Dakota MAZIE K. HIRONO, Hawaii BILL CASSIDY, Louisiana ANGUS S. KING, JR., Maine ROB PORTMAN, Ohio TAMMY DUCKWORTH, Illinois LUTHER STRANGE, Alabama CATHERINE CORTEZ MASTO, Nevada Colin Hayes, Staff Director Patrick J. McCormick III, Chief Counsel Kelie Donnelly, Deputy 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 Cantwell, Hon. Maria, Ranking Member and a U.S. Senator from Washington..................................................... 5 Risch, Hon. James E., a U.S. Senator from Idaho.................. 6 Lee, Hon. Mike, a U.S. Senator from Utah......................... 6 WITNESSES Balash, Joseph, nominated to be Assistant Secretary of the Interior for Land and Minerals Management...................... 7 Glick, Richard A., nominated to be a Member of the Federal Energy Regulatory Commission.......................................... 12 McIntyre, Kevin J., nominated to be a Member of the Federal Energy Regulatory Commission................................... 16 Nelson, Ryan, nominated to be Solicitor of the Department of the Interior....................................................... 21 ALPHABETICAL LISTING AND APPENDIX MATERIAL SUBMITTED Alaska Outdoor Council: Letter for the Record........................................ 140 American Public Gas Association: Letter for the Record........................................ 141 Athay, William, et al.: Letter for the Record........................................ 142 Balash, Joseph: Opening Statement............................................ 7 Written Testimony............................................ 10 Responses to Questions for the Record........................ 55 Cantwell, Hon. Maria: Opening Statement............................................ 5 Conrad, Gregory: Letter for the Record........................................ 47 Glick, Richard A.: Opening Statement............................................ 12 Written Testimony............................................ 14 Responses to Questions for the Record........................ 72 Grasser, Eddie: Letter for the Record........................................ 48 Kenai River Sportfishing Association: Letter for the Record........................................ 49 Lee, Hon. Mike: Opening Statement............................................ 6 McIntyre, Kevin J.: Opening Statement............................................ 16 Written Testimony............................................ 18 Responses to Questions for the Record........................ 92 Murkowski, Hon. Lisa: Opening Statement............................................ 1 National Rifle Association of America: Letter for the Record regarding Joseph Balash................ 50 Letter for the Record regarding Ryan Nelson.................. 146 Nelson, Ryan: Opening Statement............................................ 21 Written Testimony............................................ 23 Responses to Questions for the Record........................ 130 North Slope Borough (Alaska): Letter for the Record........................................ 51 Risch, Hon. James E.: Opening Statement............................................ 6 Sullivan, Hon. Dan: Statement for the Record..................................... 4 Utilities Technology Council: Statement for the Record..................................... 147 NOMINATIONS OF BALASH, GLICK, McINTYRE AND NELSON ---------- THURSDAY, SEPTEMBER 7, 2017 U.S. Senate, Committee on Energy and Natural Resources, Washington, DC. The Committee met, pursuant to notice, at 10:38 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, everyone. The Committee will come to order. We are here today to start off the September session by considering four nominations; two for the Department of the Interior (DOI) and two for the Federal Energy Regulatory Commission (FERC). Our Interior nominees are Joe Balash, to be the Assistant Secretary for Land and Minerals Management, and Ryan Nelson, to be the Solicitor. Our FERC nominees are Rich Glick and Kevin McIntyre, who is slated also to be designated as the Commission's Chairman upon confirmation. I want to thank all four of our nominees for their willingness to serve or continue serving our country. Each of you has been nominated for a critical leadership position at an agency or department that is very important. You will certainly have the power to affect millions of American lives. As we have noted here many times before, FERC has significant reach into the national economy. According to the Congressional Research Service, the value of energy commodities flowing through FERC-regulated wires and pipes is approximately three percent of the nation's GDP. Of course, what those commodities go on to fuel and power make up an even larger component of our broader economy. Just before the August state work period we approved two FERC nominees and restored a working quorum for the Commission. After six months with just one confirmed commissioner, the nominees before us today will provide this agency with a full complement of five members. They have their work cut out for them as they address---- [Protester interrupting.] The Chairman. The Committee will come to order. As I was saying, the FERC will have their work cut out for them. They have to address a significant backlog of pending matters, but with these nominees FERC will be back up to speed with a full roster. I am confident that Mr. McIntyre will be a capable Chairman upon his confirmation. He has significant experience and strong qualifications for the role. Mr. Glick, who is Senator Cantwell's General Counsel here on the Committee, is certainly well known to many of us. I will let Senator Cantwell speak to his background and qualifications, but I, personally, want to thank him for his service to this Committee, including his role in shaping our bipartisan energy bill and many other matters. Mr. Glick, I truly appreciate the working relationship that we have had and what you have contributed to the Committee. Given the extraordinary scope of the Interior Department's responsibilities, including its administration of more than a quarter of the land in our nation and about two-thirds of the land of Alaska, we also recognize that it is well past time that Secretary Zinke and Deputy Secretary Bernhardt have the help that they need. I welcome the nomination of Ryan Nelson of Idaho, a Westerner and a seasoned General Counsel. Mr. Nelson is returning to Washington, DC, to resume his already notable public service, this time as Solicitor. Senator Risch will have a few words as he will introduce him shortly. I will focus my own introduction on our fourth nominee, Mr. Joe Balash of the great State of Alaska. I am delighted to have Joe before the Committee today. He is a fellow Alaskan which should be enough to convince everyone to just vote yes on his nomination. [Laughter.] Mr. Balash hails from North Pole, not ``The'' North Pole, but from North Pole, Alaska. He is currently serving as Senator Sullivan's Chief of Staff. He previously ran Alaska's Department of Natural Resources. I have worked closely with him in both of these roles, and I truly cannot say enough about his understanding and, certainly, knowledge of these issues. I think he will be an excellent Assistant Secretary, overseeing the Bureau of Land Management (BLM), the Bureau of Ocean Energy Management (BOEM) and several other key agencies within the Department of the Interior. Senator Sullivan did want to be here today to introduce Mr. Balash but that wasn't possible due to a death in his family, so I will read a short statement that Senator Sullivan wrote before submitting his full statement for the record. Senator Sullivan says, ``Joe Balash currently serves as my Chief of Staff. While we are sorry to lose him, the job that Secretary Zinke has tasked him with is one that, I believe, he is uniquely qualified for. Joe was my Deputy Commissioner of Alaska's Department of Natural Resources and then he became the Commissioner of DNR. Alaska's DNR manages one of the largest portfolios of land, water, oil, gas, renewables, timber and minerals in the world. Responsible development of Alaska's resources requires working closely with all groups that have a stake in Alaska's lands and waters, including environmentalists, conservationists, hunters, tribes, energy companies and citizens. Joe understands how to work to develop our resources while always understanding that our lands sustain us and stringent environmental safeguards are absolutely necessary for all Americans. Joe Balash is a hard worker, a great father and husband and a good friend. I hope this Committee can vote him out favorably to be considered by the full Senate.'' [The information referred to follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] The Chairman. Well, Joe, like Senator Sullivan, I certainly look forward to having you at the Department of the Interior. I know a lot of Alaskans, a lot of Westerners, feel the same way. Again, thank you for your willingness to step up in this capacity. Now, to a little bit of the business. For members who will have questions for our nominees, I will be here for as long as possible today. I am bouncing in and out of committees, as I know other members are, but if any members have additional questions after the hearing, questions for the record will be due at the close of business today. Finally, I would advise members to be prepared to report these nominees as soon as possible. With that, I turn to Senator Cantwell for her opening remarks. After that we will have brief remarks from Senator Risch to introduce Ryan Nelson, and then we will swear in all the witnesses. STATEMENT OF HON. MARIA CANTWELL, U.S. SENATOR FROM WASHINGTON Senator Cantwell. Thank you, Madam Chair, and thanks for scheduling this hearing and congratulations to all the nominees on being nominated for your posts. Because of the recess, I have not had a chance to meet with three of the nominees, Mr. McIntyre, Mr. Nelson and Mr. Balash, but I look forward to doing that now that we are back. So I look forward to your comments this morning as well. I did want to say something, though, this morning about our FERC nominee to the Commission. I am particularly pleased by the President's nomination of Rich Glick to the Federal Energy Regulatory Commission. Rich has worked, as the Chairwoman just said, most recently for us on the Committee for the past 18 months, but he brings a rich wealth of knowledge about electric utility, natural gas and a myriad of other energy issues working in both the public and private sectors. He gained that knowledge working for Senator Dale Bumpers, one of our former colleagues, as Legislative Director and Chief Counsel, and as Policy Advisor to Energy Secretary Bill Richardson during the Western energy crisis. He has also worked for two major electric utility companies, PacifiCorp and Iberdrola, which is now Avangrid. He understands the complex issues that come before the Commission because he has spent 25 years working on them. He also understands the importance of FERC and its role in protecting the public interest and ensuring that just and reasonable rates for natural gas and electricity help keep the markets fair and free of market manipulation. [Protestor interrupting.] Senator Cantwell. Rich's appointment to the Commission certainly will be a loss for us here but it will be a gain for FERC. I look forward to an opportunity for him to elaborate more on that experience during today's hearing. So, thank you, Madam Chair, for scheduling this hearing so promptly as we have returned and, obviously, we have a lot of work to do. The Chairman. Thank you, Senator Cantwell. Senator Risch. STATEMENT OF HON. JAMES E. RISCH, U.S. SENATOR FROM IDAHO Senator Risch. Thank you very much, Madam Chairman. It is my honor and privilege today to introduce Ryan Nelson who is here with us today, and he has been nominated by the President to serve as Solicitor of the Department of the Interior. Ryan, we are glad you have agreed to do this, and we are appreciative of that. Mr. Nelson lives in Idaho Falls, Idaho, and is General Counsel for an Idaho-based company. All of you are familiar with Idaho Falls, Idaho, because you have listened to me wax on and on about the merits of the Idaho National Laboratory (INL) and INL is located in Idaho Falls. Most importantly to me today, Mr. Nelson's family is here. His wife and his seven children, all seven children, are here today for this hearing. So we are so honored that you would bring your family along. Mr. Nelson graduated from the Brigham Young University (BYU) Law School with honors and clerked immediately thereafter for Judge Henderson in the DC Circuit. He has had other clerkships, but most notably he was a clerk on the Iran/U.S. Claims Tribunal in The Hague in the Netherlands. He has served as Deputy Assistant Attorney General in the Environment and Natural Resources Division of the Department of Justice, and he has served as Special Counsel here in the United States Senate for the U.S. Senate Judiciary Committee. I think the President has made an excellent choice for the Solicitor's job, so I commend him to the Committee and I have confidence that after we hear from him the Committee will be well disposed to send his nomination to the Floor. I want to yield some time to my seatmate here, Senator Lee, who is modestly acquainted with the nominee. STATEMENT OF HON. MIKE LEE, U.S. SENATOR FROM UTAH Senator Lee. Thank you, Senator Risch, and thank you Madam Chair for letting me break in for a brief moment of personal privilege. Ryan Nelson and I have been friends for over 20 years. I got to know him in law school. He was known as a brilliant law student and he absolutely was. I helped recruit him to the law firm of Sidley Austin where I was working as Ryan completed his clerkships, and it was a real pleasure to work with him. We have remained friends ever since then. Ryan is known throughout the country as a lawyer who is dedicated to the rule of law and he was willing to do the hard work to figure out what the law requires and to advise his clients accordingly, to seek justice at every turn. In addition to his many other accolades and the fact that he is a father of seven, which Senator Flake will tell you, is actually a fairly small family, but---- [Laughter.] He also is fluent in Dutch and Flemish. I am sure both of those talents will come in handy in his new position, should he be confirmed. Thank you very much. We look forward to hearing from you, Ryan. Senator Risch. Thank you, Madam Chairman, we yield back. The Chairman. Thank you, we appreciate that introduction and appreciate, again, the willingness of all of you to be with us today. The rules of the Committee which apply to all nominees require that they be sworn in connection with their testimony. So, I would ask that you all please rise and raise your right hand. Do you solemnly swear---- [Protester interrupting.] The Chairman. Gentlemen, 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? [Nominees answer, yes.] The Chairman. Before you begin your statement I will ask-- you can go ahead and be seated. I will ask three questions addressed to each of you before this Committee. Will you be available to appear before this Committee and other Congressional Committees to represent departmental positions and respond to issues of concern to the Congress? [Nominees answer, yes, we will.] The Chairman. Are you aware of any personal holdings, investments or interests that could constitute a conflict or create an appearance of such a conflict should you be confirmed and assume the office to which you have been nominated by the President? [Nominees answer, no.] The Chairman. Are you involved or do you have any assets held in blind trusts? [Nominees answer, no.] The Chairman. At this point in time we will lead off with Mr. Balash, again, who has been nominated to be the Assistant Secretary of the Interior for Land and Minerals Management. Mr. Balash, welcome to the Committee. To each of you as you begin your statements, if you would care to introduce any family members that you might have here with you today, we would certainly welcome that opportunity as well. STATEMENT OF JOSEPH BALASH, NOMINATED TO BE ASSISTANT SECRETARY OF THE INTERIOR FOR LAND AND MINERALS MANAGEMENT Mr. Balash. Chairman Murkowski, Ranking Member Cantwell, members of the Committee, I'm humbled to appear here today as President Trump's nominee for the position of Assistant Secretary for Land and Minerals Management of the Department of the Interior. It is an honor to be asked to serve in this role, and I thank Secretary Zinke for the opportunity to work for the people of the United States. Thank you as well for your remarks, Madam Chair, as well as those on behalf of Senator Sullivan. I could not be here today without the support of my wife of 21 years, Brenda, who's here with me, seated behind me along with our youngest child. Our oldest child, our teenager, has elected to stay in school today since classes just began on Tuesday. My parents are also in the hearing room, Larry and Janie Balash, as well as a couple of my sisters. The Chairman. We welcome them. Mr. Balash. I grew up in a large Air Force family moving all around the United States. One of the rules my dad instilled in us was to leave a place better than we found it, whether it's a picnic area at a park or the family visiting center for those times he was called to alert duty. In the early 1980s, we were able to visit my grandparents' homes in the Pittsburgh area twice a year, and on those trips I observed the deterioration of the mighty steel industry that my grandpap, Dick Sharkins, cherished. At the time, he used to curse the EPA for shutting down the mills that employed him and his brother teamsters. At the time, I concluded the only choice we had was either good jobs or a clean environment. My dad's next duty station, however, was at Eielson Air Force Base in the interior of Alaska. This was truly a life- changing event for me. We spent my early teenage years chasing salmon wherever his Subaru could take us. As I learned about the spawning cycle of salmon and their dependence on an entire system of water bodies, my appreciation for the value of clean water grew, and at the same time I began to learn about the permanent fund dividend program and where our state's wealth came from. The reality of how Alaska managed to produce so much oil while sustaining healthy salmon populations caused me to revisit those earlier conclusions. I realized that with the right approach, you can have responsible development without sacrificing clean air and water. As I wrapped up my collegiate education, I had an opportunity to work for my hometown legislator in Alaska's capital. I spent the next eight years working as a Legislative Aide and learned that our ability to get things done in public service depends on relationships across regions, across party lines and despite differences on separate issues. In 2006, I made my way from the Legislative Branch to the Executive Branch of state government, and at the Department of Natural Resources (DNR) I was charged with managing and leading an organization that manages one of the largest portfolios of land and water in the world. While I was there we resolved disputes that bedeviled the state for decades, established new standards for the transfer of ownership in oil and gas properties. We oversaw the placement of the first offshore platform in state waters in nearly 20 years, we opened the first state park in decades with a view of Denali that rivals any other I've seen and we published maps with clear delineations of trails to enable hunters and anglers to access public lands while respecting private property. I'm proud of what we accomplished at DNR while I was there, but all of this was really done by the people who carry out the day-to-day functions of the Department. During my time, I learned that managing people who are smarter than you and know more about the details, requires an open management approach in order to drive the organization toward complex decision-making. You have to provide a transparent view into what you're trying to do and why you want to do it. I believe that an approach like this helps ensure the organization, as a whole, focuses on the bigger picture. If confirmed, I would take such an approach at the Department of the Interior. The public lands of the United States contain a tremendous bounty of natural resources, resources that represent the assets of the American people. When managed effectively, these assets can deliver opportunities to recreate, appreciate and generate wealth. Under Secretary Zinke's leadership and the goals established by President Trump, I believe the Department of the Interior can deliver on this promise. My background and the experiences I've gained managing the assets of my home state have prepared me well to serve as the Assistant Secretary for Land and Minerals Management and it would be my honor to do so. If confirmed, I will work relentlessly to produce the value the American people deserve from their public lands and this includes recreational access, responsible energy development and active management of the Department's assets. I'll do so within the confines of the laws established by the Congress and with the dedication to transparent leadership and accountability. Chairman Murkowski, thank you for the opportunity to appear before the Committee today. I look forward to your questions. [The prepared statement of Mr. Balash follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] The Chairman. Thank you, thank you very much. Mr. Glick, welcome. STATEMENT OF RICHARD A. GLICK, NOMINATED TO BE A MEMBER OF THE FEDERAL ENERGY REGULATORY COMMISSION Mr. Glick. Thank you. Chairman Murkowski, Ranking Member Cantwell and members of this Committee, thank you for the opportunity to appear this morning as a nominee to serve on the Federal Energy Regulatory Commission. Senator Cantwell, I want to begin by thanking you so much for the very generous statement that you made. I really appreciate everything you've done for me. I want to thank you and Senator Schumer for the confidence you all have shown in me by putting my name forward for this position. I'm especially grateful to Senator Cantwell for bringing me back to work in the United States Senate, where I spent six- and-a-half years in the 1990s. Although the faces have changed and some of the issues have changed, the Senate, particularly the Senate Energy and Natural Resources Committee, remains a special place. It has been a privilege to work for this Committee and Senator Cantwell over the last 18 months and with this Committee's extremely professional staff on both sides of the aisle. I also want to thank Chairman Murkowski for working tirelessly to expedite this nomination process. And I would be remiss if I failed to mention Senator Dale Bumpers, who served as a senior member of this Committee and the Ranking Democrat when I worked for him in the 1990s. I owe so much to Senator Bumpers for taking a chance on me and for serving as a mentor on politics and life, but especially for instilling in his staff the notion that public service is a noble calling. I also want to recognize my wife, Erin, and our son Alexander, who have joined me here today. Alexander just started third grade a couple days ago, and he's already enjoying his first day off for the year. [Laughter.] They are both a constant reminder of what is really important in life. I have had the opportunity to work on a number of major energy issues over my career. As a young lawyer at a Washington, DC, law firm I helped to represent public power utilities and utility regulators. As a Legislative Director and Chief Counsel to Senator Bumpers, I worked on several provisions that were included in the Energy Policy Act of 1992 and helped to draft bipartisan legislation addressing electric industry restructuring. As a Senior Policy Advisor to Energy Secretary, Bill Richardson, I worked on the Clinton Administration's response to what at the time was known as the ``western energy crisis''. Thereafter I worked for a multistate electric utility in the West with a significant amount of baseload electric generation, PacifiCorp. I then went to work for what is now known as Avangrid, an energy holding company that is one of the biggest renewable electricity generators in the U.S. and operates several gas and electric distribution utilities in the Northeast. And most recently, I have had the honor of serving as a General Counsel for the Minority on this Committee where I have worked on several energy policy issues, including the bipartisan energy bill that's currently pending on the Senate calendar. On each occasion, I have witnessed the important roles that FERC plays. FERC's decisions can have a significant impact on the lives of everyday Americans. For instance, the Commission's inability to come together on a unified response during the height of the western energy crisis in 2000 caused consumers to pay more for electricity and natural gas than they should have. If I am so fortunate to be confirmed by the Senate to serve as a FERC Commissioner, I intend to work with my colleagues to safeguard the public's interests. I also look forward, if confirmed, to working with my fellow commissioners to help facilitate the ongoing dramatic transformation to the ways Americans produce and consume energy. This revolution has the potential to substantially improve our energy efficiency, reduce emissions, grow the economy and create millions of new jobs. FERC, working with state regulators, can help eliminate barriers to the adoption of these new technologies and processes. Senator Cantwell and Chairman Murkowski, thank you again for the opportunity to appear before this Committee today. I also look forward to answering your questions and the questions of your colleagues. [The prepared statement of Mr. Glick follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Senator Barrasso [presiding]. Thank you and congratulations, Mr. Glick. Mr. McIntyre, please proceed. STATEMENT OF KEVIN J. McINTYRE, NOMINATED TO BE A MEMBER OF THE FEDERAL ENERGY REGULATORY COMMISSION Mr. McIntyre. Thank you, Senator. Good morning. Good morning, Ranking Member Cantwell and members of the Committee on Energy and Natural Resources. I am honored to address you today as a nominee to a vital independent agency that has been the principal focus of my career, the Federal Energy Regulatory Commission. I begin by thanking the President of the United States for this nomination. I am humbled by the confidence that he has placed in me, and if confirmed by the Senate, I will do my utmost to exceed the high standards that the American people expect of their public servants. Thirty years ago this summer, I first discovered FERC when, as a law clerk at an energy law firm here in Washington, I was assigned to a natural gas rate matter. What I encountered in that first brush with FERC was a bustling, multifaceted agency with a language all its own and a mission whose importance was obvious to me even then as a young novice. That first experience triggered a lifelong passion for the field of energy law and policy, and it set me on course for a career in the field of energy regulatory law. Over the past three decades, I have counseled and represented clients in nearly all industry sectors, with many different market roles, including transmission and transportation providers, customers of such entities, generators of renewable, nuclear- and fossil-fueled electricity, integrated utility companies, energy producers, marketers and traders, a Native American tribe, and many others. This diverse experience has prepared me for the scope and variety of matters within FERC's jurisdiction and has helped me to appreciate the broad range of perspectives on the complex economic, environmental, community and national security issues that come before FERC. It is impossible for me to separate my enthusiasm for energy law and policy from my equally fervent passion for the practice of law, a profession that is honorable and essential for its role in giving voice to the rights and interests of all, and ultimately for advancing the cause of justice in cases large and small. I have the privilege of serving as co-head of the global energy practice of Jones Day, and in that capacity working with and learning from colleagues whom I regard as among the finest lawyers in the world. I have observed first-hand how excellence in legal advocacy has led to significant improvements in law and policy. My belief in the importance of excellence in legal practice and processes and their role in bringing about a more just society goes hand-in-hand with my belief in the importance of the rule of law, which my firm has worked to strengthen through pro bono and charitable efforts around the world. I raise this background and these beliefs because they have engendered in me a philosophy of governance that I would bring to FERC, if confirmed. Specifically, I believe that any consideration of potential action by FERC, or by any governmental body, must begin with a firm understanding of the applicable legal requirements and that any action taken must satisfy those requirements in full. Because many situations permit a range of equally lawful decisions, including some with profound policy implications, it is also critical to ensure a full airing of all views on the matter, with input by stakeholders, including the public. If confirmed, I would be guided by these principles, rooted in the rule of law and in a commitment to processes that are open, transparent and fair, with an insistence on excellence in the workings of government. I would strive to bring an even- handed and judicious approach to each matter, with a focus on listening, which is indispensable to fairness and sound decision-making. I would like to thank my family and others who are here with me today. I begin with my dear wife Jenny, who, besides being a heroically supportive spouse and mother to our children, is also a terrific lawyer, on whose counsel I rely daily. I am delighted that our children are here. Lizzie, a second-grader at St. Thomas More Cathedral School in Arlington; Tommy, a new kindergartener, also at St. Thomas More; and wee Annie, in pre-K at the Reed School in Arlington. I also thank my parents, Jack and Alice McIntyre, for being here, and, yes, for enduring my early years with love and patience. My views on the importance of public service were formed in observing my dad's long career in the U.S. Air Force and my mom's own sacrifices as a military spouse in service of our country. Finally, allow me to acknowledge my parents-in-law, Irene and Leger Brosnahan, and the other family members, dear friends and colleagues who are here today. I thank them all for their enduring support. With that, I thank you for this opportunity to appear before the Committee, and I look forward to answering your questions. [The prepared statement of Mr. McIntyre follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Senator Barrasso. Thank you very much, Mr. McIntyre. Congratulations, again, on your nomination. Mr. McIntyre. Thank you, Senator. Senator Barrasso. Mr. Nelson, we welcome your comments. STATEMENT OF RYAN NELSON, NOMINATED TO BE SOLICITOR OF THE DEPARTMENT OF THE INTERIOR Mr. Nelson. Senator Barrasso, Ranking Member Cantwell and members of the Committee, I am honored to appear before you as the President's nominee to be Solicitor at the Department of the Interior. I ask for your consent to the President's nomination. I am joined today by my lovely, ever supportive and eternally patient wife, Barbara, and our seven kids--my son, Baerett, who is interning here at the Senate; and then Ashley, Sophie, Savannah, Olivia, Russell and Lucy. Also with me are my parents, Doug and Billie Nelson. My father is currently fighting and winning his battle with cancer, and I am very grateful that he can be here today. My father-in-law, Mark Baer, and his wife, Shirl, are also here. They are serving collectively their seventh mission for the church at Fort Lee Army Base in Prince George, Virginia. My sisters, Angela Groberg and Hayley Potter, are also here with their sons, Jack and Isaac. And other family friends are present and watching this hearing online. I'm grateful to Senator Risch for his kind words of introduction. I have long admired Senator Risch as a great Idaho leader, and he has brought his tenacity to the Senate where he gets great work done for the American people. I'm grateful for the public support of Senator Crapo. He is from my hometown, and I was at his home or he was at our home when I was just 16 and gave me a great early interest in legal and political issues. And I do want to thank Senator Lee for his kind introduction. He's been a great friend and colleague over the years as well. I've been nominated to serve as Secretary Zinke's Chief Counsel and lead the legal team at the Department of the Interior, a team of 300 lawyers, who serve 67,000 employees and manage 20 percent of the land of the United States. I welcome the opportunity, if confirmed, to further the mission of the Department, to protect and manage the nation's lands, natural resources and cultural heritage. I was born and raised in Idaho, a sixth-generation Idahoan. My playground growing up was Yellowstone and Grand Teton National Parks, Island Park, where our family cabin was on leased federal land, and Craters of the Moon National Monument and Preserve. I have used federal lands in Idaho and most of the states for a wide variety of outdoor activities including boating, skiing, hiking, camping, hunting and fishing. Growing up in Idaho, I, in Shakespeare's words, found ``tongues in trees, books in running brooks, sermons in stones and good in everything.'' Although I grew up and was educated in the West, I spent my early legal career here in Washington. I first came to DC to work for the Senate Legal Counsel right after President Clinton had been impeached by the House of Representatives. I recall walking up to Capitol Hill for my first time to start work on December 28th, with the city cold, dark and empty and a deep sense of awe for this Senate body, which I hold today. I was grateful to assist the Senate Legal Counsel team that was calm and even-handed in a hot, political environment as we provided quick, unbiased and accurate legal advice to enhance the political process. After an appellate clerkship and several years practicing as an appellate lawyer, I was appointed Deputy Assistant Attorney General for the Environment and Natural Resources Division (ENRD) at the Department of Justice. There, I gained a deep understanding and respect for natural resource and environmental law as well as the important mission of the Department of the Interior, which is, by far, the Division's largest client. I managed some of the most complex and natural resource legal questions and argued several cases and appeals. The ENRD political team developed productive working relationships with the exceptional career attorneys, relationships which, if confirmed, I hope to call on as a colleague, client and friend. In 2009 I returned home and have since served as General Counsel for one of Idaho's largest corporations, Melaleuca, a $1.75-billion worldwide company. I have seen first-hand the impact government policies have on working citizens and families. I am proud that much of my efforts have been spent protecting the ``little guy,'' the average American who is working hard and trying to get ahead. If confirmed, I am committed to use my extensive legal background to accurately interpret the law, follow it and fulfill the Department of the Interior's vital mission, to protect our country's resources and heritage for the next generation. I am convinced that President Trump's and Secretary Zinke's goals for the Department will not only preserve, but will increase our value of our natural resources for future generations. Thank you. I look forward to your questions. [The prepared statement of Mr. Nelson follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] The Chairman [presiding]. Thank you. Again, gentlemen, I apologize that I had to step out. I am going to defer to Senator Cantwell. Senator Cantwell. Thank you, Madam Chair. I want to say, again, congratulations to all of you on your nominations. Each of you come with a deep resume of experience. I think it is important. So thank you for that. I wanted to ask you, Mr. McIntyre, obviously, FERC is an agency that can play such an important role in prohibiting manipulation. We saw in the Western energy crisis, the manipulation to a great degree of electricity with various schemes that I can still recall. Fat Boy, Get Shorty, a whole variety of things that were just about moving power in and out of markets as a way to spike rates. Since we have given the Commission authority, they have investigated over 100 cases of alleged manipulation and collected a half a billion dollars in civil penalties for market manipulation. Are you committed to policing the energy markets and keeping them free from this kind of manipulation? Mr. McIntyre. Thank you for the question, Senator. Yes, I absolutely am. FERC's role in enforcement is a very important one, and I believe in a robust program of enforcement. If confirmed, I would bring that view to my work at the FERC. Senator Cantwell. So you do not believe that it is just calling balls and strikes but protecting the public interest standard as it relates to just and reasonable rates for electricity and natural gas? Mr. McIntyre. I think it goes beyond just just and reasonable rates. As you suggested in your question, the Congress did, in the Energy Policy Act of 2005, give express authority to the FERC to police market manipulation in energy markets regulated by the FERC. That's something that comes up in a number of different contexts, and I think it's essential that the FERC get that right. This goes back to my assistance on the rule of law. Senator Cantwell. Thank you. Mr. Balash, can you talk to me about royalty rates? Where do you think we are on royalty rates and whether you think that they are, on coal and oil and gas leases, too high, too low? Will you seek to lower them? What is your philosophy on that? You and I have not had a chance to meet yet, so---- Mr. Balash. Thank you, Senator. When it comes to the collection of royalties and rents, you know, that is the public's ownership interest in the subsurface, the mineral estate that belongs to all of us. And when it comes to establishing those rates it needs to be done with an eye toward not only earning a return for the American people but also with an eye toward the circumstances and economic conditions under which that particular resource can be extracted. In some cases, depending upon the price environment, the specific geological challenges and also the access to infrastructure, sometimes those rates need to be higher relative to other places and sometimes lower. In my experience at DNR, we increased the minimum bid due on bonuses paid at the time of an auction. We also increased annual rental rates and, in some circumstances, very tightly controlled and defined, according to statutes, reduced royalties. So, it really does depend on the circumstance at the time. Senator Cantwell. Well, I will follow up on that. In what areas were they reduced and why? Maybe that is something you and I can either talk about or follow up on. Mr. Nelson, how do you look at this as Solicitor? The Obama Administration had said that we had outdated rules on royalties because they had not been updated in 34 years. How do you look at this issue in the agency's responsibility on royalties? Mr. Nelson. Senator, I think the agency needs to look at the rules and review them and make sure that they are adequately providing value for the American people. Obviously, any new rules would have to be adopted consistent with the APA, and I would take a hard look at that once I get in. Senator Cantwell. Do you think after 34 years--is it time to update, to look at the environment? Mr. Nelson. I really don't have an opinion on that, Senator. I think it depends on the circumstances. It could be okay, but maybe there is a need to update. Senator Cantwell. Okay. I think I will follow up with you on that. Mr. Glick, cyberattacks on our electric utilities and grid are a constant and growing threat. Are you satisfied that we are doing enough here? Do you think that there is more that needs to be done to protect the grid? Mr. Glick. Well, thank you, Senator. Clearly, there's more that does need to be done. Utilities are under, the grid is under constant attack from both nation states but other bad actors as well. And we saw a report that just came out yesterday that indicated that more utilities were--systems were penetrated. That is something we need to take a look at. I think that the FERC has, along with NERC, pursuant to its reliability authority, subjected utilities to various standards, cybersecurity standards, physical security standards as well, to hopefully prevent and limit the ability of others to attack. But also, we need to take a look at our supply chain. FERC asked NERC, I think it was last year, to come up with a rulemaking to address the supply chain of utilities, especially as it relates to their industrial control systems. And it's something, I think, we need to follow through on. So if I am confirmed, I certainly will want to work on that. Senator Cantwell. Thank you. Thank you, Madam Chair. The Chairman. Senator Barrasso. Senator Barrasso. Thank you very much, Madam Chair. Mr. Glick, I sure appreciated your comments there about the threats, the attacks on the grid and supply chain and reliability. I am going to ask you a question first, Mr. McIntyre, and then you, Mr. Glick. Wyoming is the nation's leading coal-producing state. The coal industry is responsible for thousands of certainly, Wyoming jobs, and billions in state and local government revenues. But coal also plays a critical role in electric grid reliability and resilience. Unlike other generation sources, coal-fired power plants have fuel storage on site and the ability to generate power 24 hours a day, 7 days a week. In a recent FERC podcast, Acting Chairman Neil Chatterjee recognized the importance of maintaining the nation's coal fleet. Specifically, he said that the baseload generation resources, such as coal power plants, should be recognized as an essential part of the fuel mix for power generation. So Mr. McIntyre, first to you. Do you share the Acting Chairman's views and do you have any comments you would like to make about that? Mr. McIntyre. Thank you for the question, Senator. I confess, I did not see the podcast or hear the podcast. However, as you suggest, coal, historically, has played an enormously important role in our nation's generation of electricity. And you use the term baseload, the concept being the electric generating plants that can essentially run full tilt, around the clock, often nuclear-fueled power plants are mentioned in this context as well. The importance of such resources cannot be denied; however, FERC is not an entity whose role includes choosing fuels for the generation of electricity. FERC's role, rather, is to ensure that the markets for the electricity generated by those facilities proceed in accordance with law. I think, overall, the FERC's role should be to take a hard look at these very important questions and determine where FERC's jurisdiction actually gives it a role in making decisions that could ensure that there is proper attention to the reliability and resilience impacts of what have traditionally been thought of as baseload generation. Senator Barrasso. Alright, thank you. Mr. Glick? Mr. Glick. Well, Senator, as Mr. McIntyre suggested, coal certainly makes up a significant portion of the grid. And, as I understand it, coal and natural gas combined make up about 64 percent of all electric generation. So, for me, it's a question of reliability. The Department of Energy Grid Study that was released recently, I had a chance to review it, essentially suggested that the significant loss of baseload generation of both coal and nuclear has not impaired reliability to date, but they also suggested it's something we need to keep an eye on and look for in the future. And so, I think it's both, both FERC and the Department of Energy need to keep an eye on that and continue to study the matter. Senator Barrasso. Great. Thank you. Mr. McIntyre, the Department of Energy recently released the staff report to the Secretary on electricity markets and reliability, known as the Grid Study. The study expresses concerns that wholesale electricity markets do not adequately compensate coal and nuclear baseload power generation resources. If this problem continues, baseload plants continue to be taken offline. This study concludes that the reliability and resilience of the nation's power grid may be at risk. To fix the problem the study recommends that the FERC take steps to improve how electricity markets compensate baseload power. As incoming FERC Chairman, what action would you take to improve how electricity markets compensate this baseload power generation? Mr. McIntyre. Thank you for the question, Senator. I should note that the FERC already has a good bit of work underway in this area. They convened a series of conferences earlier this year on price formation in energy markets with a particular eye toward issues along those lines. And if confirmed to the FERC, I would commit to looking very carefully at these issues and giving them the attention they deserve. Thank you. Senator Barrasso. Mr. Balash, on July 6th Secretary Zinke issued an order to streamline the Bureau of Land Management's review process for applications to drill oil and gas on federal land. I am encouraged by his order. As Secretary Zinke explained, BLM has nearly 3,000 pending applications and takes an average of 250 days to process an application. Oil and gas permitting delays directly threaten our energy security. It threatens American jobs. It threatens economic stability in many small communities. As Assistant Secretary for Land and Minerals Management, it will be your responsibility to implement Secretary Zinke's orders. What steps will you take to ensure that the BLM field offices have the resources that they need to relieve this incredible backlog of oil and gas permit applications? Mr. Balash. Thank you, Senator Barrasso. When I assumed the position at the Alaska Department of Natural Resources in 2010, along with Senator Sullivan, we found ourselves in a circumstance not unlike this, with a tremendous backload of applications for permits, rights-of-way authorizations. We immediately undertook a review, along with the leadership of the Department, the career professionals, to understand what the cause of that backlog was, why they weren't able to process them in a timely manner, what some of the administrative cycles and appeals might be and also what resources they needed additionally. We came up with a specific, robust plan to address all of those questions, including funding positions, accounts and even worked with our legislature to identify opportunities to, maybe, streamline statutory procedures in a more modern way. The advent of information technology really enables us to speed up some of those processes that used to require on a more mundane, sort of, paper format. So I'm pleased to say that we were able to eliminate more than 50 percent of that backlog and ultimately, I would seek to perform a similar review and result here at the Department of the Interior. Senator Barrasso. That is very encouraging. Thank you, Madam Chairman. The Chairman. Thank you, Senator Barrasso. Senator Heinrich. Senator Heinrich. Thank you, Madam Chair. Mr. Balash, I want to bring your attention to the area around Chaco Culture National Historic Park as we spoke a little bit in my office yesterday and the role, in particular, that BLM plays in managing that surrounding area. As I mentioned to you, it is a very complicated location. There are BLM lands and minerals, Navajo tribal lands and minerals, as well as individual Indian allotments, all mixed together in a very complex, sort of, checkerboard pattern. And that is not to mention the state lands and state sections, the private lands that are also mixed into this area. Chaco is a truly unique site. It is recognized internationally for its cultural resources, and it has been a sacred site for both the Pueblo tribes as well as the Navajo nation for as long as anyone can remember. Last year the BLM and the BIA signed an agreement to be co- lead agencies on the Resource Management Plan (RMP) Amendment that is currently underway for this area. Having both of these agencies at the head of the table, working together, I believe, is critical to protecting the important cultural resources and religious sites while also planning for future energy development in this basin. Will you commit to working with the New Mexico delegation to keep that agreement and working relationship intact and to ensure that the tribal interests are given full consideration in this RMP process? Mr. Balash. Thank you, Senator Heinrich. Having worked on a smaller level, but equally complex basis in multiple locations around my home state I understand the value of bringing everybody to the table and working in a very collaborative manner. You do have my commitment to reach out and work with the leadership at BIA to continue the agreement, assuming it works for both parties. There's a lot, I'm sure, to review upon confirmation, and I look forward to working with your office on that. Senator Heinrich. Thank you, and I as well. I want to switch over real quick to our two FERC nominees, and I want to follow up on some questions from Senator Barrasso. I, too, have been following very closely DOE's recent staff report on power markets. I was pleased that they concluded that the grid is operating reliably. I am concerned that the term baseload power has potentially become a bit of, less of an engineering term and more of a political term in recent years. In particular, the indication within that report that potentially FERC should modify existing competitive markets for bulk power as an attempt to either prop up or even subsidize central generation technologies that are no longer cost competitive in current market conditions. Would each of you care to share your thoughts, in particular, on this DOE report and, in particular, suggestions to FERC? You can flip a coin for who goes first. Mr. McIntyre, it looks like you are ready. Mr. McIntyre. Thank you, Senator. It's a complex area and it touches upon a couple of different aspects of the FERC's jurisdiction, not just the oversight of energy markets and the assurance of just and reasonable rates in those markets, but also the reliability component of protection of the grid and the issues go to both of those areas of FERC's jurisdiction. What I would assure you, if confirmed by the Senate, is that I would give the matter very careful consideration. It does also overlap with work that's currently underway at the FERC. In light of that it wouldn't be appropriate for me to suggest a specific policy position on it here. Senator Heinrich. Mr. Glick? Mr. Glick. Senator, like Mr. McIntyre, I'm reluctant to comment too specifically because it's a pending matter. I will note that the Commission had a 2-day technical conference on this matter both, I think, on May 1st and 2nd of this year and there's been a number of comments filed since. So it's worth looking at the record. I will say your comment about prop up, I think, is very important. The Commission doesn't have the authority nor should it prop up failing technologies or technologies that are uneconomically competitive. I think the DOE Grid Study suggests that there are some reliability attributes that those technologies provide. I think so far, as I mentioned earlier, the Grid Study found that the loss of those technologies, the loss of some baseload generation hasn't had an impact on reliability. But as I said before, it's worth looking at. I think it's certainly worth studying, continuously studying, but certainly the Commission shouldn't be in the business of propping up technologies. Senator Heinrich. Thank you both. The Chairman. Thank you. Senator Flake. Senator Flake. Yes, Mr. Balash, Secretary Zinke has frequently spoken of restoring trust between the BLM, those who use federal lands and those who live near those lands. Coming from a state that is roughly 42 percent federally owned, only about 18 percent of Arizona is privately owned, I understand the actions of BLM have significant impacts on the economies in rural Arizona. I often hear from constituents about issues such as BLM mismanagement of wild burrows, problems with access to federal lands and slow permit processing times. What opportunities do you see for the Bureau to improve engagement with local stakeholders in actions such as developing land management plans and cooperatively managing these critical resources in Arizona? Mr. Balash. Thank you, Senator Flake. As a former adjacent landowner and manager in my home state, I got to experience first-hand various planning processes and NEPA reviews with BLM and other federal agencies. And I would say that more than anything I hope to instill, as a Westerner, the perspective of being, not just a good neighbor, but a quality neighbor in the Western part of our nation. These reviews and processes conducted with cooperating agency recognition of these other governments needs to be more than just a paper exercise. There needs to be real consideration given to the comments that come in from those state, local and tribal governments that we will work with in these processes. Senator Flake. Thank you. Regarding BLM permit processing, Arizona has a long history, as you know, of responsible mining that has taken place on BLM, Forest Service and private lands. Because of the prevalence of BLM lands throughout the state, many mines on private lands need BLM permits for access or relating land disturbance activities. It is shocking to hear stories about the length of time it takes to get the most straightforward mining permit in Arizona. For example, there is a proposed gold mine near Quartzsite that they have been trying to get up and going for years. That is a very small, simple mine using no toxic chemicals on a few acres far away from the nearest settlement. It took them several years just to get their BLM permits in what can only be described as a very haphazard process. We cannot afford to have land management agencies be so slow to work with those who want to pursue much needed economic activity on these public lands. I hope that with your experience at the Alaska Department of Natural Resources, you can bring to bear those experiences on this agency. Do you think that you can speed up the permit time? Mr. Balash. Well, thank you, Senator Flake. I believe that the overall management approach needs to reflect the fact that these lands belong to the public, not necessarily to the agencies that manage them, and with that change in perspective or attitude we can be timely, efficient and certain in the administration of permit applications and adjudications. Senator Flake. Right. Well, thank you. Mr. Nelson, your position on BYU football ought to be enough to secure your nomination, I am sure. But be that as it may, one area that we want to talk about is cooperation between Arizona and the Department on tribal water right settlements. Just this morning I reintroduced the Hualapai Tribes Comprehensive Water Rights Settlement Act. We have several settlements that are in need of legislative action this year, some are in the negotiation phase, others are being implemented. Can you explain how your previous experience at DOJ will help guide you as you work with us on these water right settlements? Mr. Nelson. Thank you, Senator, for the question. When I was at the Department of Justice I had the opportunity to work with Michael Bogert, who was Counselor to Secretary Kempthorne, and he was heavily involved on these Indian water rights settlements and they are complicated, to say the least. You have a situation where there's sometimes more claims on the water than there is water and the tribes, their rights, often predate many of the other water rights that exist and may be being used. So everyone needs to come to the table. What I found and what I saw was that the settlement discussions were much more beneficial than years of protracted litigation that ultimately, in many cases, didn't actually work to any good. There are guidelines on how to settle those, and I would intend to follow those and help expeditiously push those forward. Senator Flake. Right. Thank you. The Chairman. Senator King. Senator King. Thank you, Madam Chair. Mr. Balash, I understand that as Commissioner of Natural Resources in Alaska you filed some claims with regard to ANWR for exploratory drilling and other claims. Now in your new position you would be in a position to grant those claims. Do you intend to recuse yourself? How are you going to handle this, what looks to me like, conflict? Mr. Balash. Thank you, Senator King. The actions that we took at the Department of Natural Resources in this particular context, as I recall, were directed at the Fish and Wildlife Service. That is not going to be one of the bureaus or services that reports to the position I hope to be confirmed to. Nevertheless, I absolutely commit to seek all the guidance and advice I can get from our ethics counselor at the Department of the Interior and follow that guidance to ensure that there is no conflict in any particular decision that might come---- Senator King. And I do not know the details of the issue, but I think this is a question of appearance and public confidence in our governmental process. So, I hope you will consult with the ethics folks on that. Thank you. On the baseload issue that Senator Heinrich mentioned, I am also disturbed that the term baseload is becoming a political term and not necessarily a scientific term. My only request is when you are making these kinds of decisions, let's just go with the science. I mean, I think that is obvious, but I think that is the fall back. We will go with the science in terms of what the grid can stand and what it cannot and where reliability is, but I think that it is important that FERC not get tangled up in, advertently or inadvertently, favoring one technology over another and getting involved in the politics of generation. I hope, Mr. McIntyre, that is the position you will take. Mr. McIntyre. Thank you, Senator. Yes, I mean, FERC does not pick fuels among different generating resources, and so it is important that it be open to, as you say, the science which I would expand somewhat to include also the characteristics of reliability and the characteristics of economics and the other features that are very important to satisfying the energy needs of our nation. But yes, I absolutely commit to making decisions on those bases. Senator King. Mr. Glick, FERC has taken preliminary steps over the past couple of years to reduce barriers preventing distributed energy resources including, particularly energy storage, to reducing those obstacles. Do you believe that FERC has a continuing role in being sure that all resources can compete equitably and evenly and the full value should be provided for things like storage or distributed energy or demand response kinds of resources? Mr. Glick. Yes, Senator. You know, much of distributed energy resources is regulated at the state level. It's behind the meter technology, in many cases, whether it be rooftop solar in some cases, storage or even demand response. On the other hand, those technologies also provide benefits or can provide benefits at the wholesale market. So, for instance, energy storage plays a potential to provide significant reliability benefits at the wholesale electric markets. As you know, the Commission proposed a rulemaking recently that would allow the storage facilities, as well as distributed energy resources, an aggregate to participate in wholesale energy markets. I don't want to comment on a specific matter that I might be called upon to vote, but I will say that the Commission does have a responsibility to prevent undo discrimination against technologies. It's something, I think, the Commission needs to take a look at. If I'm confirmed, I certainly will do that. Senator King. Well I think for both of you, you are entering into these positions, assuming you are confirmed, at a time of tremendous dynamism in the industry; an industry that essentially was unchanged for 100 years, and now, suddenly, there are so many different options. That is going to be a real challenge to be sure that a regulatory system that was established 70 or 80 years ago can meet the needs and respond to the technologies of this, of the coming decades, both in terms of economics but also in terms of environmental externalities. Mr. McIntyre, your thoughts? Mr. McIntyre. I agree fully with that perspective, Senator. The---- Senator King. This is not your grandfather's FERC. Mr. McIntyre. It is not. The FERC operates under statutory standards that were set in law decades ago, justness and reasonableness, avoidance of undo discrimination, and yet our energy industry has, of course, modernized itself significantly since then. And so, the challenge at the FERC is to determine how to apply these statutory standards to today's energy industry. Senator King. I would hope that as you work through these issues if you see areas where those statutes, which as you point out are decades old, could stand some upgrading or improvement or modernization, you will let this Committee know so that we can work with you to be sure you have the legislative and statutory tools necessary to respond to today's market conditions. I hope you will do that. Mr. McIntyre. Yes, thank you, Senator. Senator King. Thank you. Thank you, Madam Chair. The Chairman. Thank you, Senator King, that was absolutely right in line with what I was going to be asking next. I was going to raise it in the context of---- Senator King. I was afraid you were going to say absolutely wrong. The Chairman. Oh, no, no. [Laughter.] You are right on the money this time. Senator King. That long pause made---- The Chairman. Yes, yes, yes. I wanted you to think about it. But you mentioned the evolving nature of the energy markets and where we are and an agency that is somewhat locked into your father's energy world. So whether it is the energy storage that you have raised, the integration issues that we know present themselves, the siting infrastructure-- Siting has become more and more difficult and certainly more complicated whether it is for a wind farm, transmission lines, natural gas pipelines, whatever it may be, and so how you define or arrive at the appropriate balance of the environmental concerns that need to be addressed with the needs of the public to have adequate infrastructure, these are important. These are imperatives, and finding that balance is important. We expect that you do that in your role. But to Senator King's point, I would certainly want your assurance that where you see whether it is the bureaucratic red tape or just the overlay of regulations that have come over the years that have not yet been, kind of, cleaned out, that we can have your commitment to be working with the Committee to let us know how we can make the process better. I am very worried that we do not have alignment here with where the industry is going and where our regulatory structure is currently. I am assuming you both agree with that and recognize that we need to be working together on this? Mr. McIntyre. Yes, Madam Chairman, I absolutely do. And if confirmed, I would look forward to playing a role in that. The Chairman. Great. Mr. Glick, because of your experience on this Committee you have particular insight, I think, that you can hopefully share with us. Mr. Glick. Yes, Madam Chairman, I'd be glad to do that. As my colleagues behind the dais there know, I already have a lot of ideas that I'd like to put forward. The Chairman. Yes. Mr. Glick. But I would certainly be glad to work with you all on that. The Chairman. Good, good. Mr. Nelson, let me ask you a question, and this relates to some of what we have seen in the news of late. The Park Service, some of the other agencies within DOI have been the subject of numerous investigative reports from Interior's Inspector General, subjects of which have even included the previous Park Director himself, topics ranging from sexual misconduct to really some major ethical violations. What do you think needs to be done to improve not only the Park Service but within the Department of the Interior as a whole to avoid this kind of conduct by employees in the future and to really make sure that there is a more positive and conducive work environment for the employees and those who visit our public lands? Mr. Nelson. Yes, thank you. I fully support Secretary Zinke's zero tolerance policy regarding that type of behavior and those employees need to be put on notice that if they get out of line then they will be terminated. There is no way that the Department can operate looking the other way on any of that type of behavior, and I would fully support that. I'd have to get in to see. I've read the public reports, but I don't know exactly all of the details. So once I get in, I'd be more than willing to work to stamp that out. I totally agree that that type of behavior is unacceptable, particularly as a public servant. The Chairman. Well, we would certainly hope you make that a priority. Thank you. Mr. Balash, I do not need to remind you of the important, the critical, commitment that we have to our nation's first peoples. Alaska is home to half of the tribes in the country. Through the Alaska Native Claims Settlement Act there is a unique relationship between our tribes and the Federal Government. There has been a lot of discussion coming out of leaders in the State of Alaska that have been concerned that consultation between our tribes and the Federal Government and our agencies has been more of a, just a check the box exercise. There has been frustration on many levels. I know that this is not just out of Alaska but in other parts of the country as well. I would like your commitment to conduct meaningful and consistent consultation with the tribes and native organizations, not only in Alaska but across the country, and to really involve them in appropriate decision-making that is relevant to them. I would ask you to provide that level of commitment to us. Mr. Balash. Madam Chair, I'm fully committed to making sure that we follow all of the law, but more importantly, that we actually pay attention to what we're told in those consultation sessions and that we take into account those very real needs and concerns of the people who are most affected by the decisions made by the Department. The Chairman. Thank you. I appreciate that. Next, let us go to Senator Cortez Masto. Senator Cortez Masto. Thank you, Madam Chair. Gentlemen, welcome and thank you for your willingness to serve. Welcome to your families who I think have taken over the whole room. It is wonderful to see you all here. I am from Nevada and just came back from touring rural Nevada. If you do not know, about 85 percent of the land in Nevada is owned by the Federal Government. I think the Federal Government owns more land in Nevada than any other state. Because of that we interact on a regular basis with the BIA, BLM, Bureau of Reclamation, DoD, Department of Energy, Fish and Wildlife Services, Forest Services and the National Park Service. Mr. Balash, I would like to start with you because the number one topic of conversation as I went around our rural communities where there is farming and ranching and mining is the BLM. What I would really like to just get a commitment on, I have already heard it but I just want to make sure that I can hear it for purposes of Nevadans, is that you are willing to work with all of those federal agencies. Number one, when an issue comes up that we are dealing with, whether it is addressing fire services or wild horses or sage grouse or lands in Nevada, that you are willing to come to the table and be not only a part of that discussion but bring your federal agencies and work with them where we can streamline issues that we are dealing with, work together for those resources and help us bring those other federal agencies to the table. Are you willing to do so? Mr. Balash. Senator Cortez Masto, absolutely. Senator Cortez Masto. Great. The second question would be are you also willing then to also come to the table when we have issues at a state, local level, whether it is our state officials, local officials or our tribes that are in Nevada, Native American tribes or key environmental stakeholders to really find solutions? That is typically how we work in Nevada, bringing everybody together to find solutions to the issues and hoping that you would be at the table and would be willing to do so. Is that a yes? Mr. Balash. Yes, ma'am. Senator Cortez Masto. And then I am curious about your position on state's rights because of the positions you have held before in Alaska. How do you see the role between the states and the Federal Government and that interplay, particularly where you are now? Mr. Balash. Thank you, Senator. Having previously served in a capacity where I managed a large portfolio of land, water and a variety of resources, the need to work with other agencies and specifically, federal agencies, was something that we had to undertake on a regular basis in nearly every case. And I believe that you get much further when people come to an understanding, jointly, collaboratively, by first understanding the problems that each other has and then identify solutions together. That's an approach that I have seen work in my prior positions, and I'm committed to doing that at the Department of the Interior as well. So as far as the words, state's rights, that's something for the attorneys to argue about. And what I can tell you is that I learned a lesson from a colleague long ago that just because you can do something, doesn't mean you should. There may be things that BLM or any of the other agencies in the portfolio I hope to be confirmed to administer that there are decisions that they can make unilaterally, but that doesn't mean that they should and taking into account the views. I'm going to be very deferential to the views of state and local governments, also their elected Members of Congress. And while I use the word, deferential, that's not an absolute. There will be times when there's a pressing national interest or concern that has to be taken into account, but it's going to need to be a compelling one for me to be willing to even consider going a different way. Senator Cortez Masto. Thank you. Thank you for your response. Mr. Glick and Mr. McIntyre, let me, because I am running out of time here, say just very quickly. I agree with everything that I have heard here from my colleagues and the need to recognize the evolving and changing markets that we have out there. Electricity, what is happening with the new technology. In Nevada alone, we are moving down the path of renewable energy and renewable energy resources, and we are very excited about it. So I have a couple questions, very briefly--yes or no answers. In the State of Nevada, we have a successful renewable portfolio standard and have made great strides in creating a clean energy economy. Do you agree that states have the authority to establish the resource mix that best serves their customers? Yes or no? Mr. Glick. Yes. Mr. McIntyre. Senator, I also say, yes. Senator Cortez Masto. Do you agree that the evidence shows that solar and wind power can be reliably integrated into the power grid? Mr. Glick. Yes, Senator. There are over nine states that get more than 15 percent of their power from renewable energy today, and none have had any reliability problems. Mr. McIntyre. Yes, Senator, in part due to actions taken in recent years by the FERC, renewable energy resources are making their way, reliably, to our grid. Senator Cortez Masto. Great. Thank you very much. I know I am out of time. Thank you very much, Madam Chairman. The Chairman. Thank you, Senator. Senator Hirono. Senator Hirono. Thank you, Madam Chair. Welcome to all of you and a special Aloha to my fellow GULC graduate, Mr. McIntyre. Mr. McIntyre. Thank you so much, Senator. Senator Hirono. I will start with Mr. Balash. Hawaii has the most ambitious renewable electricity goal in the country of 100 percent reliance on renewable sources by 2045 for electricity, and the state has already attained 26 percent of renewable electricity. Hawaii is exploring its marine energy resources, including at the Hawaii National Marine Renewable Energy Center, operated by the University of Hawaii in partnership with the Department of Energy. Now, the Department of the Interior's Bureau of Ocean Energy Management, BOEM, would be responsible for leasing offshore areas for development of offshore wind, wave energy or ocean thermal energy generation systems. In 2012, BOEM established the BOEM/Hawaii Intergovernmental Renewable Energy Task Force to promote planning and coordination and effective review of requests for commercial and research leases. I want your commitment to continue the Renewable Energy Task Force with Hawaii. Mr. Balash. Senator Hirono, thank you for the question. I'm not familiar with that specific task force, but I look forward to reviewing it and working with your office to make sure that its work continues. Senator Hirono. Good. I want to also ask that you get back to me if you can make that commitment which is what I am seeking, but not only to commit, but to think about expanding BOEM's engagement with the public marine renewable energy resource development and continuing BOEM's support for ocean science to expand our knowledge of the marine and coastal environments. So not only to commit to what you are already doing in Hawaii but to expand BOEM's efforts. So, we will chat about that, should you be confirmed. Another question for you, Mr. Balash. There are concerns that have been expressed about this Administration's balancing of commercial interests over conservation efforts, and these concerns have been voiced by a number of groups and individuals. And indeed, actions such as Secretary Zinke's, basically, unprecedented review of national monuments have raised concerns all across the country, including in Hawaii which has a very large monument called Pu'ukohola Heiau. During your time as Commissioner, and Senator King did address this, you were involved in laying Alaska's claim to 20,000 acres of land. I think I heard you say that you would take the appropriate actions to recuse yourself. I am assuming that the Department has recusal and conflict of interest guidelines that you would follow. Mr. Balash. Senator Hirono, I'm absolutely committed to following the guidance proffered by the Department's attorneys. Senator Hirono. As I said, because there have been concerns raised about how the Department or how your agency would balance environmental, for example, versus commercial interests, I would want your commitment that in future actions you would bring to the table the stakeholders, such as the environmental people and the commercial people, before you take action. Mr. Balash. Thank you, Senator Hirono. In my prior post at the State of Alaska we regularly brought in the various environmental organizations to make sure that we had an open dialogue, were aware of the issues of concern that they were monitoring, not only on state lands but also federal lands and other private adjacent lands. So that is a practice that is going to require a bigger scale in this position, if confirmed, but I would seek to have a similar open channel with those communities. Senator Hirono. Yes. I think what we are looking for is an open commitment to that kind of a process because apparently that has not always been thus at your Department. For Mr. McIntyre, you may know that Hawaii does not fall within FERC's jurisdiction over interstate energy transactions because there is no other contiguous state. But in 2012 the FERC and Hawaii Pacific Utilities Commission signed an agreement to share information on energy issues and regulatory practices. At the time of the agreement, FERC recognized that Hawaii could provide special insight into integrating high levels of renewable energy, demand response, microgrids and energy storage. From Hawaii's perspective, FERC's knowledge and resources are especially helpful in adapting regulations to fit the state's shift to 100 percent renewable electricity by 2045. If you become Chairman of FERC, will you commit to continuing FERC's information sharing with Hawaii? Mr. McIntyre. Thank you, Senator. FERC shares information and collaborates with various levels of government and indeed, with other countries as well. I think it's an important part of FERC's role. And if confirmed, I would hope to continue in that tradition. Senator Hirono. As I mentioned, I think Hawaii has some unique experiences to offer in the areas that I talked about. So it is not just an arrangement that you have with just anybody, but Hawaii is uniquely positioned, perhaps, to provide insights and allowing us to go forward with renewable energy development and grid development. Mr. McIntyre. Yes, I understand. Thank you, Senator. Senator Hirono. Thank you. Thank you, Madam Chair. The Chairman. Thank you, Senator Hirono. Senator Duckworth. Senator Duckworth. Thank you so much, Madam Chair. To date, gentlemen, 30 states have passed renewable portfolio standards, and I would like to return the conversation back to state's rights. Never thought you would hear so much about state's rights from Democrats, huh? But here we are. Multiple states, including Illinois, have adopted policies to support existing nuclear power plants. We have more nuclear power plants than any other state in the nation. States are enacting these policies for a wide variety of reasons, ranging from improving energy diversity to helping the environment and boosting economic development. Mr. Glick and Mr. McIntyre, you have answered this before with my colleague from Nevada, but I just want to be sure that I can get your reassurance that you would agree that state level energy policies, as passed by the duly elected legislators and governors of each state, that this is the appropriate place for these policies to be decided, in the states. Mr. Glick. Senator, Congress has left for the states the authority over utility resource decision-making, so that's not in FERC's role. I think the Supreme Court in the Hughes case essentially outlined how states could make resource decisions and not interfere with FERC's jurisdiction, and I think, without prejudging any particular matter, I think the Hughes case is something I will certainly follow. Senator Duckworth. Thank you. Mr. McIntyre? Mr. McIntyre. Yes, thank you, Senator. We do have a federal system of law. The FERC has its role and the states have theirs and there is no question the states have the absolute right to implement these renewable portfolio standards. Senator Duckworth. Thank you. Certainly those as applied in Illinois fall under that Supreme Court decision. Infrastructure has been at the front of the mind for us here in Congress. I believe the right kind of the infrastructure does not just have the capacity to create thousands of jobs in the short-term but also should have the capacity to deliver economic opportunity in the very long-term as well. Mr. Glick and Mr. McIntyre, if confirmed, how would each of you work through FERC to promote greater investment that will both modernize and expand our nation's energy transmission infrastructure? Mr. McIntyre. Thank you, Senator. FERC's role in energy infrastructure is what I think of as its original jurisdiction, going back to hydroelectric power in 1920 and then expanded to natural gas facilities in the 1930s. States here have a role as well. Generally speaking, electric transmission infrastructure is cited at the state level. So that, of course, is something that the FERC must continue to respect. I can commit to you that, if confirmed, these are areas that are important issues and I would hope to bring the attention that these issues deserve to them. Senator Duckworth. Thank you. Mr. Glick? Mr. Glick. So Senator, there are a number of various infrastructure investments that we're talking about in the energy industry. As Mr. McIntyre mentioned, some are more within FERC's jurisdiction than others, but I want to talk about electric transmission for a second because we clearly need additional electric transmission, both to access remotely located renewable resources but also to reduce congestion and allow consumers to have greater access to less expensive power. I think the Commission's siting authority is very limited there. That's mostly an issue left up to the states, but the Commission does have other authorities. For instance, in Order 1000 it required utilities to engage in regional transmission planning. I think that's worked pretty well. It also has various incentive rate authorities that Congress gave it, I think, in 2005 that would encourage the investment in additional transmission resources. So I think it's something that the Commission does have a broad set of policies that can produce increased investment, it's just not on the siting front. Senator Duckworth. That is a real concern of mine, the balancing of what consumers can afford against what, really, are tremendous costs that are required to upgrade existing facilities. I do not see how we, as a nation, compete on a global scale when we have aging infrastructure at all levels. That is a real concern that I would ask both of you to really think about how we balance that out and yet still be able to make the commitments to investment and promoting investments so that we can truly compete on a global scale when it comes to our energy infrastructure. In fact, you know, energy and energy infrastructure also have a tremendous impact on our environment. Given that, what role should FERC play toward securing a cleaner environment? Mr. Glick. Well, Senator, I'm not aware FERC has much of a straightforward, direct role in promoting environmental enhancement. That's certainly left up to the EPA and other agencies, as well as the Congress. But I would say that FERC has, in terms of, and I mentioned this in my opening statement, in terms of reducing barriers to cleaner technologies such as distributed generation or energy storage could help promote, enhance environmental benefits, but also economic benefits as well. Senator Duckworth. Thank you. Mr. McIntyre? Mr. McIntyre. Senator, I agree with the suggestion that the FERC is not an environmental regulator per se. I think it's important for FERC to keep its eyes open to opportunities to advance public policies in areas where there are, where the FERC's jurisdiction does extend, including in through our relevant environmental aspects to look at. This is something that has been growing recently in the FERC's consideration of natural gas pipeline applications. Senator Duckworth. Well, I agree with both of you and I think it is important for FERC to remain, to keep, a non- discriminatory attitude toward any specific energy, as long as we can continue to move the ball forward in that. Thank you so much. Thank you, Madam Chair. The Chairman. Thank you, Senator Duckworth. Senator Franken. Senator Franken. Thank you, Madam Chair. We are seeing devastating wildfires across the West right now. I have heard from colleagues about the effects in California and Washington and Oregon and Montana, just to name a few. Now, about a month ago, this Committee held a hearing on wildfire technology and we heard a lot about the importance of hazardous fuels treatment. We know that removing hazardous fuels lowers wildfire risk, but we also know that right now it is not economical to do so and we have so much fire borrowing that the economy here is an issue. So we have to find a market for these fuels, if we can. Now in the past I have discussed the possibility of hazardous fuel management supplying biomass for district energy projects or combined heat and power plants, especially in the wildland urban interface because, stay with me here, you have the wildland and you have the urban, and the wildland would have the forests, say, and the hazardous fuels and the urban part would need electricity and heat and cooling in the summer and also their houses they are in and that you do not want to burn up. To me, doing this would expand distributed energy systems which would boost grid reliability and resilience but it would also lower the risk of wildfires significantly. It seems like, kind of, a win/win to me. Now, Mr. Balash, if you are confirmed for this position you would be responsible for overseeing the Bureau of Land Management and dealing with thousands of wildland fires that occur on BLM land every year. So my question is, and especially in the wildland urban interface, do you think that we can find a way to incentivize the use of hazardous fuels to generate electricity? In other words, can we recognize the co-benefit of wildfire risk reduction in these cases you see there? Mr. Balash. Senator Franken, I look forward to reviewing the particulars that relate to locations across the United States, but I know in my home state, in the community of Tok, a remarkable demonstration has occurred there where fire breaks around the surrounding community to protect it against wildfires from the Tanana Valley State Forest have been used successfully to generate heat in the core of the community for the school district and also for some of the residential and commercial buildings in the nearby area. So not only district heating but also power gen has been done effectively and economically through the use of biomass collected from these fire breaks. Senator Franken. So you like this idea? Mr. Balash. I love it. [Laughter.] Senator Franken. Okay. The Chairman. That is good to know. Senator Franken. Madam Chair, thank you. Because I know the Chairwoman has also been very interested in this. I will move on to my next point. Distributed energy and energy storage technologies help improve the reliability and resiliency of the electric grid. This is especially true in disaster situations. During Superstorm Sandy, large sections of the grid went down; however, some communities were able to keep the lights on because of distributed generation, like combined heat and power. With Hurricane Harvey last month and Hurricane Irma now, I think this is more important than ever. FERC can play an important role in promoting these technologies. Late last year FERC started a rulemaking to ``remove barriers to the participation of electric storage resources and distributed energy in electricity markets.'' Mr. McIntyre, what role do you see energy storage playing in the future in the electricity markets and transmission systems and how can FERC help ensure that energy storage is receiving proper compensation for the benefits that it provides to the grid? Mr. McIntyre. Thank you for the question, Senator. Energy storage's role in satisfying our nation's energy needs is growing year after year irrespective of any action by the FERC. Your question recognizes that there is a pending matter before the FERC looking at storage's role in energy markets overseen by the FERC, so it wouldn't be appropriate for me to indicate a specific position on that. But as a general philosophical matter, I'm very much an all-of-the-above person when it comes to the resources that we need to satisfy our energy needs and energy storage should validly be recognized as a growing part of that. Senator Franken. I am very glad to hear you, well, I know you cannot take a position. If you are confirmed, will you finalize the rulemaking for storage and distributed resources? Mr. McIntyre. Senator, I have not had an opportunity to review the record of it. I certainly can commit that I would look at that record and determine, for starters, whether it needs to, whether it's a good record on which to proceed to a decision, and if not, take stock from there as to any additional record steps that would be needed. But I absolutely commit to you that, if confirmed, I would give the matter the attention it deserves. Senator Franken. Okay, thank you, thank you very much. Thank you, Madam Chair. The Chairman. Thank you, Senator Franken. I have just about one question for each of you. Let me begin with a question directed to our FERC nominees. This relates to the Alaska gas line project. I am not going to ask you to prejudge any pending application out there, but I am sure you are aware back in 2015 the Department of Energy granted a conditional authorization for the Alaska gas line to export LNG to countries that do not have a free trade agreement with the United States. This was a pretty big milestone in our efforts to advance a gas line, and then in April of this year, the Alaska Gas Line Development Corporation filed their application with the FERC. It may be the largest application ever. I am told it is about 58,000 pages. I bet you just cannot wait to jump into this. [Laughter.] But I know that all applications, particularly applications of this size, take a significant amount of work by staff and by the Commissioners and I had an opportunity, prior to the submission of the application, to speak with those that were at FERC at the time about just the ability of the Commissioners and the staff to wade through an application of this size in a way that gives it the thorough consideration that I think it deserves but to do so in a timely and a predictable way. I would just ask the two of you, assuming that you are going to be confirmed, which I believe you will and I look forward to that, but that you would give it the same considered effort, even though it may be just physically daunting to even look at. Mr. McIntyre. Well, thank you, Senator. Let me say that I believe that FERC's role in approving energy infrastructure projects, including specifically natural gas facilities along the lines that you referenced, is one of its most important roles. I'm not surprised by the 58,000 page figure you cite. These are inherently complex matters. They're not only highly technical facilities involved, but they raise complex environmental and community issues, all of which need to be considered carefully. If confirmed, you have my commitment. I will give the matter the full attention it deserves. The Chairman. I appreciate that. Mr. Glick. Yes, Madam Chair. I think it's important, not only for the applicant, but for all stakeholders involved in the process that FERC act in a timely and predictable manner. And 58,000 pages certainly sounds like a daunting matter, but I think the Commission has a lot of staff, a lot of responsibility, a lot of history with regard to these efforts and I think certainly there are ways to expedite this matter. The Chairman. I agree and thank you for that. Just as a follow-on, more as a principle, as a policy matter. Again, without asking you to prejudge anything here, do you support Alaska's efforts to advance its stranded gas? Mr. McIntyre. Madam Chairman, I'm concerned that commenting on it might cross the line into suggesting a position on the Alaska gas line project, so I prefer to refrain from doing that. But certainly as to any state, I support the efforts of each and every state to advance its energy cause. The Chairman. Yes, I do not want to put you in a situation where you do not feel comfortable in answering that. Mr. Glick, I will assume that you are going to tell me a similar response here. Mr. Glick. Yes, I would, but I'd just add a note. The Department of Energy has already acted. The Department of Energy determines whether natural gas should be exported. FERC's authority is very limited---- The Chairman. Right. Mr. Glick. In terms of just assessing the facilities whether they qualify for a certificate of public convenience and necessity. The Chairman. Fair enough. Fair enough. Mr. Balash, we recognize that in Alaska everybody thinks about our oil and our gas assets. We know that they are considerable, but we always remind folks that we have more than just oil and gas. Our coal is considerable, our mineral wealth is considerable, but we also have extraordinary opportunities when it comes to renewables. You, in your position as Commissioner of Natural Resources for the State of Alaska, had an opportunity to work to advance some of our other considerable resources. I want to give you just a quick moment here to speak to your involvement with advancing renewable resources within the state at the same time that we were working to advance our oil and gas and coal and mineral resources. Mr. Balash. Thank you, Madam Chair. Even before my appointment at the Department of Natural Resources, when I was working in the Office of the Governor, I was part of the team that helped deliver a goal for the State of Alaska to achieve 50 percent of its electric generation by renewable sources. At the same time, we were working with our legislature to establish a renewable energy fund to help bring capital to the table for communities and regions that we're seeking to provide renewable sources of power generation as an alternative to the diesel that is used in most parts of our state. At the Department of Natural Resources, I had the opportunity to work on a variety of renewable energy projects, including in support of the exploration at Mount Spur for geothermal resources. We conducted a lease sale for Mount Augustine to also lease out the geothermal rights for that particular volcano. And in what I consider to be my own backyard, for Golden Valley Electric Association there was the Eva Creek Wind project where it was state property that had the best potential in proximity to interties to put up and erect wind turbines that we first had to wrangle through what the proper valuation methodology was to ensure that the public received a fair share, so to speak, of the value of its real estate that happened to be in a nice, consistently windy place near Healy. So I think if you take a clear-eyed look at our track record as a state, we have a very balanced approach and one that I've been proud to be a part of. The Chairman. Good. I appreciate that, and I appreciate your leadership, certainly, at the time. I do want to include as part of the Committee record today some letters of support that we have received on your behalf, Mr. Balash. So we will include that as part of the Committee record today. [The information referred to follows:] [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] The Chairman. I think we should note for the record that as we have our two FERC nominees and the one who has been named to head up the FERC and we are talking about reliability that we seem to be going in and out of the lights here today. I do not understand why. We have checked and nobody is leaning against the light switch. So, I do not know whether you should take this as an omen, good or bad. [Laughter.] That is up for you to determine. But reliability, it is all key. I am going to ask the last question to you, Mr. Nelson. When we spoke in my office, and I thank you for the conversation, I mentioned ANILCA, the Alaska National Interest Land Conservation Act. In Alaska that is, kind of, our manual of operations almost. There are contained within ANILCA several provisions that we collectively refer to as the ``no more'' clauses and there are sections specific to withdrawal of lands, public lands, in Alaska. New withdrawals cannot be in excess of 5,000 acres in aggregate. If a withdrawal exceeds that, it cannot be effective unless and until Congress acts affirmatively. And it goes further than that. It disallows certain studies of federal lands in the state for establishing conservation system units, national recreation areas, national conservation areas or other areas that are prohibited or, excuse me, they are prohibited unless authorized by Congress. Again, I am not asking you to whip out your ANILCA here and tell me word for word how you interpret the new ``no more'' clause, but I would ask you, generally, if you can share with me how you view the meaning of these various clauses within ANILCA and what it means for Alaska when it comes to for purposes of withdrawal. Mr. Nelson. Thank you, Senator. I am familiar with ANILCA and, obviously, this is a complicated question. I fully understand how unique Alaska is and the protections that were granted to Alaska in the negotiation that was done in adopting that statute. As to the ``no more'' clause, I think the language is pretty clear that if it's a withdrawal that it's not permitted and then you get into a legal discussion of what a withdrawal is. And you know, not being at the Department at this point it's hard for me to go much further than that, except to say, we certainly, I'm certainly aware of the commitments that were made to Alaska and have every intention of keeping that and reviewing the statute and giving it full consideration. The Chairman. Good. I appreciate that. We look at it pretty literally. No more means no more, and we wish that we could get a more clear interpretation more often out of our agencies. As you review, again, I mentioned to you that I think it is important that those in our agencies, who are implementing provisions under ANILCA, know and understand and really appreciate. So there are ANILCA backgrounder trainings that certainly those in Alaska have undergone, but I think even more significant than those in Alaska, those here in Washington, DC, that are making decisions that have impact on us back home, have that understanding, that knowledge, that awareness and would certainly encourage that within the Solicitor's Office. Mr. Nelson. Senator, you've got my commitment that I will make sure that all 300 attorneys have read ANILCA within a month of me being confirmed, if that happens. The Chairman. I am pretty sure most of them have, but a little refresher is not a bad thing. Again, we can certainly provide some level of expertise, but thank you for that. Gentlemen, I thank you for the time that you have given the Committee this morning and appreciate all that you are offering of yourself, your professionalism, your expertise, your time. To the families that are sitting behind you, who are the support for these leaders, thank you, because it means that there is going to be less time at home doing some of the family things that one would like. This is an important service to our country and we, certainly, appreciate that. As I mentioned at the outset, it is my hope that we will be able to advance your names out of Committee here shortly. I do think it is important that whether it is the FERC and restoring FERC to a full quorum or providing the Secretary, in this case the Secretary of the Interior, his team to be working on these issues that we all recognize are very important. We cannot get you there fast enough. So know that it is my intention to urge my colleagues to get their questions for the record in and ask you to be rapid with your responses so we can get your names moved through so that you can get to work. With that, I thank you and thank those who have joined us today. The Committee stands adjourned. [Whereupon, at 12:23 p.m. the hearing was adjourned.] APPENDIX MATERIAL SUBMITTED ---------- [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] [all]