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1 (2012)

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U.S. GOVERNMENT
INFORMATION
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                        ENERGY AND WATER DEVELOPMENT
                     APPROPRIATIONS FOR FISCAL YEAR 2013


                                 WEDNESDAY, MARCH 14, 2012

                                                        U.S. SENATE,
                       SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,
                                                             Washington, DC.
                    The subcommittee met at 2:31 p.m., in room SD-192, Dirksen
                  Senate Office Building, Hon. Dianne Feinstein (chairman) pre-
                  siding.
                    Present: Senators Feinstein, Murray, Johnson, Reed, Tester, Al-
                  exander, Cochran, Collins, Murkowski, and Graham.
                                   DEPARTMENT OF ENERGY
                  STATEMENT OF HON. STEVEN CHU, SECRETARY
                         OPENING STATEMENT OF SENATOR DIANNE FEINSTEIN
                    Senator FEINSTEIN. Good afternoon, ladies and gentlemen.
                    Mr. Secretary, welcome to the Energy and Water Subcommittee's
                  budget hearing on the Department of Energy's (DOE) fiscal year
                  2013 budget request.
                    DOE has requested $27.2 billion for fiscal year 2013. That is an
                  increase of $1.5 billion, or 5.7 percent, from fiscal year 2012.
                    Approximately $535 million-that is about one-third-of the $1.5
                  billion increase is for the National Nuclear Security Administra-
                  tion's (NNSA) nuclear weapons nonproliferation and naval reactor
                  programs. This is a 5-percent increase. The subcommittee will ex-
                  plore NNSA's budget request with Administrator D'Agostino next
                  week.
                    The rest of the Department's proposed increase is largely, as we
                  understand it, for the Office of Energy Efficiency and Renewable
                  Energy (EERE) projects, Advanced Research Projects Agency-En-
                  ergy (ARPA-E), and basic energy research.
                    The budget request clearly prioritizes some programs while mak-
                  ing difficult choices to cut funding to other programs. This is where
                  we have a lot of questions. The Congress must now determine
                  whether or not we can agree on those priorities.
                    Mr. Secretary, I hope you will highlight the administration's pri-
                  orities today and make the case for the choices that you have
                  made.
                    I would like to highlight the three largest increases in the budg-
                  et.
                    First, the single largest increase would be for EERE which would
                  see an increase of $512 million, or 28 percent. A significant portion

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