[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]


               LEGISLATIVE HEARING TO STRENGTHEN ENERGY 
                INFRASTRUCTURE, EFFICIENCY, AND FINANCING
=======================================================================

                             HYBRID HEARING

                               BEFORE THE

                         SUBCOMMITTEE ON ENERGY

                                 OF THE

                    COMMITTEE ON ENERGY AND COMMERCE
                        HOUSE OF REPRESENTATIVES

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                               __________

                             JUNE 22, 2022

                               __________

                           Serial No. 117-89
                           
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]                           

     Published for the use of the Committee on Energy and Commerce

                   govinfo.gov/committee/house-energy
                        energycommerce.house.gov
                        
                                __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
61-992 PDF                  WASHINGTON : 2026 
-----------------------------------------------------------------------------------     
                        

                    COMMITTEE ON ENERGY AND COMMERCE

                     FRANK PALLONE, Jr., New Jersey
                                 Chairman
BOBBY L. RUSH, Illinois              CATHY McMORRIS RODGERS, Washington
ANNA G. ESHOO, California              Ranking Member
DIANA DeGETTE, Colorado              FRED UPTON, Michigan
MIKE DOYLE, Pennsylvania             MICHAEL C. BURGESS, Texas
JAN SCHAKOWSKY, Illinois             STEVE SCALISE, Louisiana
G. K. BUTTERFIELD, North Carolina    ROBERT E. LATTA, Ohio
DORIS O. MATSUI, California          BRETT GUTHRIE, Kentucky
KATHY CASTOR, Florida                DAVID B. McKINLEY, West Virginia
JOHN P. SARBANES, Maryland           ADAM KINZINGER, Illinois
JERRY McNERNEY, California           H. MORGAN GRIFFITH, Virginia
PETER WELCH, Vermont                 GUS M. BILIRAKIS, Florida
PAUL TONKO, New York                 BILL JOHNSON, Ohio
YVETTE D. CLARKE, New York           BILLY LONG, Missouri
KURT SCHRADER, Oregon                LARRY BUCSHON, Indiana
TONY CARDENAS, California            MARKWAYNE MULLIN, Oklahoma
RAUL RUIZ, California                RICHARD HUDSON, North Carolina
SCOTT H. PETERS, California          TIM WALBERG, Michigan
DEBBIE DINGELL, Michigan             EARL L. ``BUDDY'' CARTER, Georgia
MARC A. VEASEY, Texas                JEFF DUNCAN, South Carolina
ANN M. KUSTER, New Hampshire         GARY J. PALMER, Alabama
ROBIN L. KELLY, Illinois, Vice       NEAL P. DUNN, Florida
    Chair                            JOHN R. CURTIS, Utah
NANETTE DIAZ BARRAGAN, California    DEBBIE LESKO, Arizona
A. DONALD McEACHIN, Virginia         GREG PENCE, Indiana
LISA BLUNT ROCHESTER, Delaware       DAN CRENSHAW, Texas
DARREN SOTO, Florida                 JOHN JOYCE, Pennsylvania
TOM O'HALLERAN, Arizona              KELLY ARMSTRONG, North Dakota
KATHLEEN M. RICE, New York
ANGIE CRAIG, Minnesota
KIM SCHRIER, Washington
LORI TRAHAN, Massachusetts
LIZZIE FLETCHER, Texas
                                 ------                                

                           Professional Staff

                   TIFFANY GUARASCIO, Staff Director
                 WAVERLY GORDON, Deputy Staff Director
                  NATE HODSON, Minority Staff Director
                         Subcommittee on Energy

                        BOBBY L. RUSH, Illinois
                                 Chairman
SCOTT H. PETERS, California          FRED UPTON, Michigan
MIKE DOYLE, Pennsylvania               Ranking Member
JERRY McNERNEY, California, Vice     MICHAEL C. BURGESS, Texas
    Chair                            ROBERT E. LATTA, Ohio
PAUL TONKO, New York                 DAVID B. McKINLEY, West Virginia
MARC A. VEASEY, Texas                ADAM KINZINGER, Illinois
KIM SCHRIER, Washington              H. MORGAN GRIFFITH, Virginia
DIANA DeGETTE, Colorado              BILL JOHNSON, Ohio
G. K. BUTTERFIELD, North Carolina    LARRY BUCSHON, Indiana
DORIS O. MATSUI, California          TIM WALBERG, Michigan
KATHY CASTOR, Florida                JEFF DUNCAN, South Carolina
PETER WELCH, Vermont                 GARY J. PALMER, Alabama
KURT SCHRADER, Oregon                DEBBIE LESKO, Arizona
ANN M. KUSTER, New Hampshire         GREG PENCE, Indiana
NANETTE DIAZ BARRAGAN, California    KELLY ARMSTRONG, North Dakota
A. DONALD McEACHIN, Virginia         CATHY McMORRIS RODGERS, Washington 
LISA BLUNT ROCHESTER, Delaware           (ex officio)
TOM O'HALLERAN, Arizona
FRANK PALLONE, Jr., New Jersey (ex 
    officio)
                             C O N T E N T S

                              ----------                              
                                                                   Page
Hon. Jerry McNerney, a Representative in Congress from the State 
  of California, opening statement...............................     2
    Prepared statement...........................................     5
Hon. Fred Upton, a Representative in Congress from the State of 
  Michigan, opening statement....................................     7
    Prepared statement...........................................     9
Hon. Frank Pallone, Jr., a Representative in Congress from the 
  State of New Jersey, opening statement.........................    13
    Prepared statement...........................................    15
Hon. Cathy McMorris Rodgers, a Representative in Congress from 
  the State of Washington, opening statement.....................    17
    Prepared statement...........................................    19

                               Witnesses

Richard Frias, Executive Director, Native American Finance 
  Officers Association...........................................    25
    Prepared statement...........................................    27
Andrew DeLaski, Executive Director, Appliance Standards Awareness 
  Project........................................................    30
    Prepared statement...........................................    33
Dustin Mulvaney, Ph.D., Professor, Environmental Studies, San 
  Jose State University..........................................    43
    Prepared statement...........................................    45
Joshua C. Greene, Esq., Corporate Vice President, Government and 
  Industry Affairs, A.O. Smith Corporation.......................    48
    Prepared statement...........................................    50
    Answer to submitted questions................................   135
Lucian Pugliaresi, President, Energy Policy Research Foundation, 
  Inc............................................................    54
    Prepared statement...........................................    56
Ben Lieberman, Senior Fellow, Energy and Environment Competitive 
  Enterprise Institute...........................................    72
    Prepared statement...........................................    74
    Answer to submitted questions................................   140

                           Submitted Material

H.R. 1599, the Securing America's Critical Minerals Supply Act 
  \1\
H.R. 5292, the Energy Accountability Act \1\
H.R. 7947, the Weatherization Enhancement and Readiness Act of 
  2022 \1\
H.R. 7962, To amend the Energy Policy and Conservation Act to 
  modify the definition of water heater under energy conservation 
  standards, and for other purposes \1\
H.R. 8053, the Guaranteeing Resilient Installations for Defense 
  Act \1\
H.R. 8068, the Tribal Energy Investment Act of 2022 \1\
Letter of June 21, 2022, by Stephen R. Yurek, et al., the Air-
  Conditioning, Heating, and Refrigeration Institute, to Joe 
  Manchin, et al., submitted by Mr. McNerney.....................   119
Letter of June 21, 2022, from David Bradley, CEO, National 
  Community Action Foundation, to Mr. Rush and Mr. Upton, 
  submitted by Mr. McNerney......................................   122

----------
\1\ The legislation has been retained in committee files and is 
  available at https://docs.house.gov/Committee/Calendar/
  ByEvent.aspx?EventID=114932.
Letter of June 22, 2022, from Dr. Ali Nouri, Assistant Secretary 
  for Congressional and Intergovernmental Affairs, U.S. 
  Department of Energy, to Mr. Rush and Mr. Upton, submitted by 
  Mr. McNerney...................................................   126
Letter of June 22, 2022, from Rich Nolan, National Mining 
  Association, to Mr. Pallone, et al., submitted by Mr. McNerney.   130
Letter of October 14, 2021, from Rep. Don Young, to Ms. Pelosi 
  and Mr. McCarthy, submitted by Mr. Upton.......................   132
Letter of June 21, 2022, from Joint Associations, to Mr. Rush and 
  Mr. Upton, submitted by Mr. McNerney...........................   133

 
 LEGISLATIVE HEARING TO STRENGTHEN ENERGY INFRASTRUCTURE, EFFICIENCY, 
                             AND FINANCING

                              ----------                              


                        WEDNESDAY, JUNE 22, 2022

                  House of Representatives,
                            Subcommittee on Energy,
                          Committee on Energy and Commerce,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10:33 a.m. in 
the John D. Dingell Room, 2123 Rayburn House Office Building, 
and remotely via Cisco Webex online video conferencing, Hon. 
Jerry McNerney (member of the subcommittee), presiding.
    Present: Representatives McNerney, Peters, Doyle, Tonko, 
Schrier, Matsui, Castor, Welch, Schrader, Kuster, Barragan, 
McEachin, Blunt Rochester, O'Halleran, Pallone (ex officio); 
Upton, Burgess (subcommittee ranking member), Latta, McKinley, 
Griffith, Johnson, Bucshon, Walberg, Duncan, Palmer, Lesko, 
Pence, and Rodgers (ex officio).
    Staff present: Waverly Gordon, Deputy Staff Director and 
General Counsel; Jessica Grandberry, Staff Assistant; Tiffany 
Guarascio, Staff Director; Perry Hamilton, Clerk; Zach Kahan, 
Deputy Director Outreach and Member Service; Rick Kessler, 
Senior Advisor and Staff Director, Energy and Environment; 
Mackenzie Kuhl, Digital Assistant; Tyler O'Connor, Energy 
Counsel; Lino Pena-Martinez, Policy Analyst; Kaitlyn Peel, 
Digital Director; Kris Pittard, Policy Coordinator; Medha 
Surampudy, Professional Staff Member; Caroline Wood, Research 
Assistant; Tuley Wright, Senior Energy and Environment Policy 
Advisor; Sarah Burke, Minority Deputy Staff Director; Nate 
Hodson, Minority Staff Director; Noah Jackson, Minority Staff 
Assistant; Peter Kielty, Minority General Counsel; Emily King, 
Minority Member Services Director; Bijan Koohmaraie, Minority 
Chief Counsel, Oversight and Investigations Chief Counsel; Tim 
Kurth, Minority Chief Counsel, CPC; Mary Martin, Minority Chief 
Counsel, Energy and Environment; Brandon Mooney, Minority 
Deputy Chief Counsel for Energy; Clare Paoletta, Minority 
Policy Analyst, Health; Peter Spencer, Minority Senior 
Professional Staff Member, Energy; and Michael Taggart, 
Minority Policy Director.
    Mr. McNerney [presiding]. will now come to order.
    Today's subcommittee is holding hearing entitled, 
``Legislative Hearing to Strengthen Energy Infrastructure, 
Efficiency, and Financing.''
    Due to the COVID-19 public health emergency, members can 
participate in today's hearing either in person or remotely, 
via online video conferencing.
    In accordance with the updated guidance issued by the 
attending physician, members, staff, and members of the press 
present in the hearing room are not required to wear a mask.
    For members participating remotely, your microphones will 
be set on mute for the purpose of eliminated--eliminating 
inadvertent background noise. Members participating remotely 
will need to unmute your microphone each time you wish to 
speak. Please note that, once you unmute your microphone, 
anything that is in Webex will be heard over the loudspeakers 
in the committee room, and subject to being heard by livestream 
and C-SPAN.
    Given that members are participating from different 
locations at today's hearing, all recognition of members, such 
as for questions, will be in the order of subcommittee 
seniority.
    Documents for the record can be sent to Lino Pena-Martinez 
at the email address we provided to staff. All documents will 
be entered into the record at conclusion of the hearing.
    The Chair now recognizes himself for an opening statement.

STATEMENT OF HON. JERRY McNERNEY, A REPRESENTATIVE IN CONGRESS 
                  FROM THE STATE OF CALIFORNIA

    I would like to welcome our witnesses for today's hearing: 
Andrew DeLaski, executive director of Appliance Standards 
Awareness Project; Richard Rico Frias, pronounced--executive 
director, Native American Finance Officers Association--thank 
you for coming; Dustin Mulvaney, Ph.D., professor, 
environmental studies, San Jose State University; Joshua C. 
Greene, corporate vice president, government and industry 
affairs, A.O. Smith Corporation; Lucian Pugliaresi, president, 
Energy Policy Research Foundation; Ben Lieberman, senior 
fellow, Competitive Enterprise Institute.
    Thank you for joining us today. We look forward to your 
testimony.
    OK, now for my opening statement.
    Good morning. Today we will be holding a legislative 
hearing on six bills authored by members from both sides of the 
aisle focused on updates and upgrades to our Nation's energy 
infrastructure.
    As the U.S. and the rest of the world undergoes the energy 
transition necessary to avoid the worst impacts of climate 
change, it is crucial that our existing system be able to adapt 
to meeting our evolving needs. The six bills present modest 
changes to Federal programs to make operations smoother and 
better able to meet the needs of energy consumers and 
developers.
    Two of today's bills focus on increasing energy efficiency 
of homes and appliances, which will be essential for decreasing 
our energy demand and lowering energy--monthly energy costs for 
Americans.
    Another two of the bills make reforms to the way Federal 
Government finances energy infrastructure, which would improve 
accessibility and accountability of Federal loan programs.
    And two of the bills address the reliability of our energy 
systems, which continues to be imperiled by climate disasters, 
supply chain issues, cyber and physical vulnerabilities, and 
aging assets.
    These bills represent a common-sense approach to reforming 
our energy laws, and I look forward to hearing what our 
witnesses have to say about them.
    First up is H.R. 1599, Securing America's Critical Minerals 
Supply Act, authored by our ranking member, Mr. Upton. Critical 
minerals are essential to the growth of renewable energy 
resources, and onshoring the supply chain will both increase 
the availability of components and support domestic jobs. This 
bill draws attention to that need as energy transition evolves.
    We will also discuss H.R. 8053, a bipartisan bill from 
Congressmen Crow, Peters, and Bacon. This bill allows the 
Department of Energy to enter into contracts or agreements to 
improve our resilience of portions of our electrical 
infrastructure that are critical to our national defense, and 
to reduce the vulnerability of this infrastructure. In my 
opinion, this should be a non-controversial bill which will 
allow us to enhance our national security by making long-term 
commitments to energy reliability, serving our military 
installations without over-burdening nearby tax ratepayers.
    Next up we have two bills focused on energy efficiency. 
H.R. 7947 from the Environment and Climate Change 
Subcommittee's Chairman Paul Tonko; this subcommittee's 
chairman, Bobby Rush; and the chairwoman of the Energy and 
Water Appropriations Subcommittee, Marcy Kaptur; and H.R. 7962, 
offered by Congresswoman Debbie Dingell.
    Mr. Tonko's Weatherization Enhancement and Readiness Act 
would strengthen the Weatherization assistance program by 
raising the cap that limits how much assistance households can 
receive to account for increasing in the prices of building 
materials, and by ensuring that the households that could most 
benefit from Weatherization programs are able to participate. 
This program has provided important services for our low-income 
households for decades, and the proposed changes can assure 
that the program continues to be accessible for years to come.
    Mrs. Dingell's bipartisan bill touches on the water energy 
nexus by harmonizing energy efficiency standards for commercial 
and residential water heaters by improving the resilience of 
our grid, by creating a demand response program for residential 
water heaters. It would also require the Department of Energy 
to issue a rule by the end of 2024 requiring that electric 
water heaters have demand response capabilities as long as that 
requirement is technologically feasible and economically 
justified. In considering this bill, I hope that we take note 
of one of the many ways in which energy and water are 
intertwined, and how energy use is embedded in the water-
related appliances in our homes.
    These bills are two great ideas that will help reduce the 
strain on our grid, while delivering electricity to our homes 
and appliances.
    Finally, we have two bills that would make common-sense 
tweaks to our loan program office within the Department of 
Energy.
    The first is the bill from our late colleague, Don Young of 
Alaska, H.R. 5292, the Energy Accountability Act. If enacted, 
it would mandate that any borrower that has previously 
defaulted on a Title 17 loan be barred from receiving any other 
loan guarantees under the program.
    Second, H.R. 8068, a bipartisan bill from Ms. Leger 
Fernandez and this subcommittee's own Mr. O'Halleran, improves 
the Tribal Energy Loan Guarantee Program by allowing the 
Department of Energy to issue loans directly revitalizing a 
program that has not been able to issue a single loan in 17 
years.
    I want to thank the authors of the bills we are discussing 
today and their staffs for their hard work and the hard work 
yet to come. This is the start of a journey on these bills, not 
the end, and I look forward to the feedback that our witnesses 
are able to provide today.
    [The prepared statement of Mr. McNerney follows:]

               Prepared Statement of Hon. Jerry McNerney
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. McNerney. I have a letter here from Dr. Ali Nouri, 
assistant secretary of congressional intergovernmental affairs 
of the Department of Energy. I request unanimous consent to 
enter the following letter from the Department of Energy into 
the record.
    Without objection, so ordered.
    [The information appears at the conclusion of the hearing.]
    Mr. McNerney. And with that I yield to the ranking member, 
Mr. Upton, for a 5-minute opening statement.

STATEMENT OF THE HON. FRED UPTON, A REPRESENTATIVE IN CONGRESS 
                   FROM THE STATE OF MICHIGAN

    Mr. Upton. Well, thank you, my friend, Mr. Chairman, and 
thanks to our witnesses for appearing before us to provide 
their testimony.
    Mr. Pallone, the U.S. is plunging deeper and deeper into an 
energy crisis driven by roaring inflation, anti-fossil fuel 
policies, demand shocks across the country.
    Our constituents are rightly concerned about the lack of 
leadership. The annual inflation rate in May, as we know, was 
8.6 percent, the highest level since 1981. Gasoline is 
averaging five bucks, with drivers in California and other 
states paying over six, getting close to seven. More than half 
of the Nation is going to be at elevated risk for power outages 
this summer, even perhaps this weekend, as reliable baseload 
power generation is retired in favor of weather-dependent green 
alternatives like wind and solar. God help us when the wind 
doesn't blow and the sun doesn't shine.
    The bills before us today are not going to alleviate the 
pain that Americans are feeling at the pump or reduce the risk 
of blackouts. And while this is supposed to be a legislative 
hearing, the DoE is not here to provide their testimony.
    Republicans on this side of the aisle have been sounding 
the alarm since day one. Energy prices surged following the 
President's cancellation of Keystone XL pipeline on day one and 
the moratorium on Federal leasing. Gas prices went up even 
further, as the EPA and FERC began to tighten the screws on 
infrastructure permitting.
    But instead of addressing the energy crisis head on, the 
President is traveling to Saudi Arabia to ask OPEC and Russia 
for more oil. Members of this committee should hear from energy 
producers on what it will take to produce more oil here at 
home.
    I am concerned by what appears to be a naive understanding 
of the scope and scale of the energy crisis and what is 
required to address it; contrary to the rhetoric from the White 
House and DoE, high gas prices will not encourage Americans to 
buy more expensive electric vehicles.
    Residential electricity prices are also increasing at 
record pace, and China is consolidating its control over more 
than 90 percent of critical minerals used in batteries and 
solar panels. If we don't reinvigorate our domestic mining 
industry, we are going to see more spikes in raw materials like 
lithium that is going to drive up costs even more for 
consumers.
    I was pleased to see my bill, H.R. 1599, Securing America's 
Critical Minerals Supply Act, included in today's legislative 
hearing. This bill is going to build on DoE's energy security 
mission by providing tools for DoE to secure a reliable 
domestic supply of critical energy resources, including 
critical materials. We can't trade away the energy security 
America has achieved through the domestic production of coal, 
oil, or natural gas for Chinese batteries and solar panels. It 
is a national security imperative that we produce the energy 
that we need right here at home. It is really simple.
    Turning to the other bills on the docket, I am supportive, 
certainly, of H.R. 5292, the Energy Accountable--Accountability 
Act, introduced by our best buddy, Don Young of Alaska. The 
legislation is a good government bill that will disqualify 
companies like Solyndra, who defaulted on a loan, from 
participating in DoE's loan guarantee program. And I would ask 
unanimous consent that his fine letter be entered into the 
record in support of that bill.
    Some of these bills will need more work, an additional 
hearing with DoE before they are ready to be marked up. I have 
questions about H.R. 8053, the GRID Act, which appears to build 
on DoE's program to protect critical defense infrastructure.
    Members of the committee should have the ability to 
question DoE on H.R. 7947 and H.R. 8053, which are bills that 
will modify DoE's Weatherization program and appliance 
standards. It appears that both bills include new language that 
could have broad and far-reaching implications for taxpayers 
and consumers. And at the end of the day, they may not be 
terribly happy.
    For example, H.R. 8053 includes a new concept that would 
allow DoE to mandate demand response, which is capability that 
allows a grid operator to remotely monitor and control 
residential appliances to reduce electricity demand. I believe 
that that raises serious privacy concerns that, again, I don't 
think are going to go over very well with consumers.
    Each of the bills before us today deserves careful 
consideration from this subcommittee. I look forward to working 
with the majority to ensure regular order.
    [The prepared statement of Mr. Upton follows:]

                 Prepared Statement of Hon. Fred Upton
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. Upton. With that, thanks again. I yield back the 
balance of my time.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes Mr. Pallone, chair of the full committee, for 5 
minutes for his opening statement.

OPENING STATEMENT OF HON. FRANK PALLONE, Jr., A REPRESENTATIVE 
            IN CONGRESS FROM THE STATE OF NEW JERSEY

    Mr. Pallone. Thank you, Chairman McNerney. Today we are 
going to discuss legislation on a range of topics that affect 
our energy sectors, including energy supply chains, energy 
efficiency, weatherization, the Department of Energy's loan 
programs office, and critical infrastructure.
    So first the subcommittee will review two bills that 
improve energy efficiency and reduce energy costs for 
consumers.
    H.R. 7962, introduced by Representative Dingell, makes 
important changes to water heater efficiency standards and 
creates a new demand response program for residential water 
heaters. This legislation could have a significant impact on 
energy consumption, help consumers save on the energy bills, 
and help utilities reduce demand during peak times. It also 
contains common-sense fixes that harmonize standards for 
residential and commercial water heaters.
    Then there is H.R. 7947, the Weatherization Enhancement and 
Readiness Act, introduced by Representatives Tonko, Rush, and 
Kaptur. It establishes an important new weatherization 
readiness program, makes other practical changes to the 
Department of Energy's weatherization assistance program.
    President Biden's Bipartisan Infrastructure Law built on 
the bipartisan work we did in the Energy Act of 2020, investing 
a historic $3.5 billion in the weatherization assistance 
program, and reducing energy costs for over 700,000 low-income 
households. Still, many households are not able to receive 
weatherization improvements due to underlying structural and 
electrical issues. So this new weatherization readiness program 
will ensure low-income families can make the upgrades necessary 
to enable them to qualify for weatherization measures, reduce 
their energy consumption, and save money on their bills.
    Then we have H.R. 1599, Securing America's Critical 
Minerals Supply Act, introduced by Ranking Member Upton. That 
requires DoE to conduct assessments and secure energy resources 
that have vulnerable supply chains. As we work to secure a 
resilient and clean energy sector, we have to make sure we are 
responsibly procuring critical minerals here in the U.S. And 
the BIF took important steps to support clean energy supply 
chains, and I am eager to learn how this bill can advance our 
work toward a resilient, clean energy economy.
    We are also considering two bills to reform DoE's loan 
programs.
    H.R. 8068, the Tribal Energy Investment Act, which was 
introduced by Representatives Leger Fernandez, O'Halleran, and 
Cole, and this bill seeks to improve the Tribal Energy Loan 
Guarantee Program, which permits DoE to provide loan guarantees 
to support energy development projects on tribal lands. But 
despite our best intentions in establishing that program in 
2005, it has not financed a single project in the program's 17-
year history, and that needs to change, obviously.
    So I look forward to hearing from the Native American 
Finance Officers Association about how the Tribal Energy 
Investment Act builds on the recent bipartisan effort included 
in the Fiscal Year 2022 appropriations package to unlock the 
promise of this essential program.
    Also, I look forward to discussing H.R. 5292, the Energy 
Accountability Act, sponsored by our late colleague, 
Representative Don Young. It would prohibit DoE from 
guaranteeing a loan for any entity that previously defaulted on 
an obligation guaranteed under Title 17 of the Energy Policy 
Act of 2005.
    And finally, we have H.R. 8053, a bipartisan bill from 
Representatives Crow, Peters, and Bacon that amends the Federal 
Power Act to provide the Secretary of Energy authority to 
address vulnerabilities to the resilience of defense-critical 
electrical infrastructure. And this bill seeks to ensure that 
homes and businesses surrounding military installations do not 
bear the cost of electrical upgrades necessary for the security 
of those military bases.
    So I think these are all important bills that will help 
strengthen our domestic energy sector.
    [The prepared statement of Mr. Pallone follows:]

             Prepared Statement of Hon. Frank Pallone, Jr.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. Pallone. And I yield back, Mr. Chairman.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes Mrs. Rodgers, ranking member of the full committee, 
for 5 minutes for her opening statement.

      OPENING STATEMENT OF HON. CATHY McMORRIS RODGERS, A 
    REPRESENTATIVE IN CONGRESS FROM THE STATE OF WASHINGTON

    Mrs. Rodgers. Thank you, Mr. Chairman.
    The need for President Biden to abandon his war on American 
energy is becoming more urgent by the day. People can't afford 
to fill up their gas tanks. Natural gas prices are surging 
because energy is foundational to every part of our lives. 
Everything is more expensive, especially food.
    We must flip the switch on American energy, produce more, 
and make life affordable again. This is clear to every American 
family as they confront record inflation and energy prices, 
declining electric reliability, blackout threats, and looming 
energy security threats from Russia's war on Ukraine. It is 
clear to domestic energy producers, manufacturers, and 
innovators as they struggle to attract capital to build and 
overcome permitting challenges, regulatory uncertainty, and 
China-controlled supply chains.
    To lower costs, President Biden must focus on removing the 
barriers to an American energy and economic resurgence. Tapping 
the SPR hasn't worked. A gas tax holiday will be ineffective, 
and would undermine funding to infrastructure projects for road 
safety. More government spending has fueled the inflation 
crisis. And asking foreign dictators for more oil, like in 
Saudi Arabia, further weakens our security and prosperity.
    To secure our energy dominance and lower prices, the 
President must abandon this agenda that has led to his 
worsening energy crisis since day one. He must embrace policies 
that encourage investments in durable American energy, and fuel 
a supply of goods and services into our economy. It means 
growing our tremendous energy systems, not dismantling them 
with rush-to-green policies that stifle innovation, undermine 
security, and raise energy costs. This should guide how we 
evaluate proposals concerning energy efficiency, energy 
infrastructure, and energy security.
    Today's hearing considers six bills on different policy 
topics. The common connection among them is the Department of 
Energy. Unfortunately, DoE is not here, and we will not be able 
to question DoE officials on these bills and the programs they 
address. I hope we have the chance soon. In the meantime, I 
welcome the opportunity for members to ask questions to 
stakeholders and other experts here.
    I am pleased to see included Fred Upton's H.R. 1599, 
Securing America's Energy--or Critical Minerals Supply Act, 
which is part of our Securing a Cleaner American Energy Agenda. 
This bill establishes a cabinet-level focus on identifying the 
critical energy resources necessary to develop and supply 
energy in America. This includes an assessment of supply chains 
across all energy systems in the United States: a critical way 
to identify and reform policies that would otherwise drive 
dependency on China. While much needs to be done to strengthen 
energy security, establishing this function at DoE makes sense. 
It updates the Department's historic role to assure reliable 
supplies of energy to enable energy security.
    Regarding the other bills before us today, H.R. 8053 
expands coverage of DoE's work to secure critical defense 
electric infrastructure to all 50 states. This sounds like a 
positive path, but the bill goes farther with additional 
contracting authorities for DoE. And more needs to be 
understood on that front.
    With this and some of the other bills we have questions 
about implementation that we are pursuing today. There are 
expansions of Federal programs that seem unrelated to the 
needed reset on energy policies. For example, H.R. 7947 would 
create a new $450 million DoE program to prepare homes for 
weatherization on top of existing programs. Yet a 
weatherization program was just reauthorized on a bipartisan 
basis just two years ago.
    What is more, through the infrastructure law Congress just 
appropriated 3.5 billion in additional spending on this 
program, far above what was authorized in 2020. So now it 
appears DoE can't spend the money appropriated, and needs a 
new, duplicative program and more funding. This deserves 
scrutiny. With record high inflation, should the Federal 
Government be paying to essentially flip houses on the 
taxpayers' dime?
    We are also concerned with mandates in H.R. 7962. This bill 
addresses water heater energy efficiency standards, but also 
requires DoE to examine demand-side management mandates. This 
is far reaching, and may place control of your water heater in 
the hands of utilities or other third parties. There are huge 
implications of this, and we must answer those questions.
    Overall, I look forward to our witnesses' testimony today. 
Welcome to Ben Lieberman, former committee staffer, and Lou 
Pugliaresi back to the committee. I look forward to your 
insights, and what is needed to reset our economic and energy 
policy, and ensure energy and economic resurgence in the great 
United States of America.
    [The prepared statement of Mrs. Rodgers follows:]

           Prepared Statement of Hon. Cathy McMorris Rodgers
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mrs. Rodgers. I yield back. Thank you.
    Mr. McNerney. The gentlewoman yields back.
    The Chair would like to remind members that, pursuant to 
committee rules, all Members' written opening statements shall 
be made a part of the record.
    I have already introduced the witnesses, and I thank you 
again for joining us today. At this time the Chair will 
recognize each witness for 5 minutes to provide their opening 
statement.
    Before I begin, I would like to explain the lighting 
system. In the front of the witnesses is a series of lights. 
The light will initially be green. The light will turn yellow 
when you have one minute left. Please begin to wrap up your 
statement at that time. The light will turn red when your time 
expires.
    Mr. DeLaski, thank you for coming. You are recognized for 5 
minutes.
    Mr. DeLaski. Thank you. Thank you very much.
    Mr. Pugliaresi. Thank you, Mr. Chairman.
    Mr. DeLaski. Thank you for the opportunity to testify 
today----
    Mr. Pugliaresi. I think we have some slides. Chairman----
    Mr. McNerney. Mr. DeLaski is recognized first.
    Mr. Pugliaresi. Oh, I am sorry.
    Mr. McNerney. Remotely. Sorry.
    Mr. DeLaski. OK. Thank you. Thank you again for the 
opportunity to testify on two very important bills. These are 
pragmatic bills that address real problems that face people 
across the United States.
    Mr. McNerney. Mr. DeLaski, you are not being--your audio is 
not sufficient. Could you turn it up?
    Mr. DeLaski. How is that working now?
    Mr. McNerney. It is better.
    Mr. DeLaski. And is it working better now?
    Mr. McNerney. Not--it is not sufficient yet. OK, we are 
going to turn it up here, if you will wait for a moment.
    Mr. DeLaski. How is my audio now?
    Mr. McNerney. OK. Please try again.
    Mr. DeLaski. OK, I will start again. Is it OK now?
    Mr. McNerney. Not really.
    Voice.  Why don't we start with Mr. Frias?
    Mr. McNerney. OK. We will skip this witness initially, and 
start with Mr. Frias.
    Mr. Frias, would you give us your opening statement?

STATEMENT OF RICHARD FRIAS, EXECUTIVE DIRECTOR, NATIVE AMERICAN 
    FINANCE OFFICERS ASSOCIATION; ANDREW DeLaski, EXECUTIVE 
    DIRECTOR, APPLIANCE STANDARDS AWARENESS PROJECT; DUSTIN 
  MULVANEY, PH.D., PROFESSOR, ENVIRONMENTAL STUDIES, SAN JOSE 
   STATE UNIVERSITY; JOSHUA C. GREENE, ESQ., CORPORATE VICE 
    PRESIDENT, GOVERNMENT AND INDUSTRY AFFAIRS, A.O. SMITH 
   CORPORATION; LUCIAN PUGLIARESI, PRESIDENT, ENERGY POLICY 
 RESEARCH FOUNDATION, INC. (EPRINC); AND BEN LIEBERMAN, SENIOR 
            FELLOW, COMPETITIVE ENTERPRISE INSTITUTE

                   STATEMENT OF RICHARD FRIAS

    Mr. Frias. Greetings, Chairman McNerney, Ranking Member 
Upton, Chairman Pallone, and Ranking Member Rodgers. My name is 
Rico Frias. I am the executive director of the--of NAFOA, and a 
citizen of the Chihene Nde Nation. Thank you all for your time 
today, as well as the opportunity to talk about talk--talk in 
support of H.R. 8068, the Tribal Energy Investment Act of 2022.
    As anyone who has filled their gas tank in the past few 
weeks knows, the energy industry touches every part of our 
economy and of our daily lives. We have seen how energy 
development can transform communities, how it can pull entire 
regions out of poverty, and how it can shape world events. At 
NAFOA we know that tribal governments are excited to unlock the 
energy potential of Indian country, and we believe that H.R. 
8068, which permanently changes the ability of the loan 
programs office to offer direct nation-to-nation loans, is an 
important step to helping us get there.
    Indian tribes hold a unique place in our country. They also 
face challenges that traditional energy development 
organizations do not face. For example, the status of tribal 
trust land creates barriers that non-tribal energy developers 
would not encounter. The change from loan guarantees to direct 
loans from the Department of Energy removes the impediment of 
finding a lender willing to fund the project. The lack of 
access to capital is a longstanding problem, as many 
institutions have largely shown an unwillingness to work in and 
with Indian country.
    Direct loans are also more consistent with the nation-to-
nation relationship that tribes share with the U.S. Federal 
Government. The treaties are the basis for the trust 
responsibility the U.S. has with tribes. Permanently 
authorizing the loan program's office to do direct loans 
strengthens the nation-to-nation relationship, and takes 
another step in fulfilling the promises the United States has 
made to tribes.
    By permanently authorizing LPO to offer direct loans to 
tribal governments, we are addressing two critical topics for 
Indian country: energy and economic development. By offering 
direct loans, we are removing an unnecessary component from an 
already complex process, and addressing the lack of access to 
capital that tribes and tribal members face.
    For the future of tribes it is crucially important that 
quality, high-paying, and, perhaps most importantly, long-term 
jobs are on or close to traditional tribal lands. This helps 
solve several of the issues tribal governments face, such as 
creating jobs that encourage tribal members to stay within 
their communities, and to ensure that employment remains 
diversified so that a downturn in one industry, which we have 
seen due to COVID recently, would not cause outsized economic 
harm to the tribal economy.
    Direct loan authority also addresses the lack of access to 
capital within Indian country. Banks and other financial 
institutions have for many years failed to work in Indian 
country. This is why the change from loan guarantees to direct 
lending is so important. While we encourage financial 
institutions to work in Indian country, the recent joint notice 
of proposed rulemaking on the Community Reinvestment Act shows 
how difficult it really is to bring capital into tribal 
communities and other under-served communities.
    One of the major benefits we feel of the LPO direct loan 
program is that the program, like NAFOA, is technology 
agnostic. We know the benefit of a clean, balanced, and stable 
climate, as well as the need for energy transition over the 
coming years. However, while tribes and their members are 
excited to participate in the new energy industry, they should 
not be required or asked to bear the economic burden of the 
energy transition that the broader economy is still 
economically benefiting from.
    Additionally, renewable energy products--projects require a 
tax equity partner, which adds another layer of complexity for 
tribes to overcome.
    It is also crucial for the unique nation-to-nation 
relationship and for tribal self-determination that individual 
tribes be allowed to decide which energy sources meet their 
community's unique needs and economic circumstances.
    When tribes are given a level playing field, they are able 
to compete with and even surpass the competition. Permanent 
authorization of the LPO loan program is another step toward 
unlocking the Indian country's potential for not just energy, 
but economic development overall. Removing uncertainty around 
the LPO's authority to offer direct loans will help tribes 
across the country to compete in the energy industry, and 
ensure that our economy works for everyone.
    Again, I thank you very much for your time today, and for 
allowing me to testify. I am available for any questions.
    [Speaking native language.] Thank you.
    [The prepared statement of Mr. Frias follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. McNerney. Thank you. The gentleman yields. We would 
like to try again to recognize Mr. DeLaski, and hope that this 
time we can follow through.
    Mr. DeLaski, you are recognized.

                  STATEMENT OF ANDREW DeLASKI

    Mr. DeLaski. Thank you. I appreciate the opportunity to 
testify today, and thank the committee for this opportunity.
    I am here today to testify in favor of two very important 
bills: H.R. 7947, the Weatherization Enhancement and Readiness 
Act; and H.R. 7962, a bill to amend the Energy Policy and 
Conservation Act with respect to water heaters.
    I would like to thank Representatives Tonko and Dingell, 
respectively, for the introduction to these bills, and all the 
cosponsors for their support.
    I am here today on behalf of two organizations, the 
Appliance Standards Awareness Project, of which I am the 
Executive Director; and the American Council for an Energy 
Efficient Economy. ACEEE is a non-profit, 501(c)(3) 
organization that acts as a catalyst to advance energy 
efficiency policies, programs, technologies, investments, and 
behaviors so that all households experience equitable benefits 
from energy efficiency improvements. ASAP is a coalition 
project housed at ACEEE that works to advance and defend new 
appliance equipment and lighting standards that cut emissions 
that contribute to climate change, and other environmental and 
public health harms, save water, and reduce economic and 
environmental burdens for low and moderate-income households.
    I also want to recognize organizations that were involved 
in the development of the Weatherization Enhancement and 
Readiness Act and helped us prepare this testimony: the 
National Association of State Community Services Programs, the 
National Community Action Foundation, and the National Consumer 
Law Center. We are grateful for their longstanding leadership 
on this program, and their work to support this bill's 
development.
    With respect to the water heater bill, I would like to 
recognize the contributions of the Air Conditioning, Heating, 
and Refrigeration Institute; the National Rural Electric 
Cooperative Association; the Solar Energy Industries 
Association; and the Natural Resources Defense Council. We 
worked in collaboration with each of these organizations during 
the bill's development. And we also consulted with State 
governments, other efficiency organizations, and individual 
utility companies. Of course, any errors in this testimony of 
commission or omission are my responsibility alone.
    These bills will improve two of the most important Federal 
programs for easing the burdens of high energy bills on low-
income families, and delivering large energy savings that 
protect our environment, improve power system reliability, and 
improve energy security.
    The first, the Weatherization Enhancement and Readiness 
Act, would add needed flexibility to the Federal weatherization 
assistance program, which helps low-income families by making 
energy efficiency improvements to their homes. The reforms 
contained in this bill would, first, raise the maximum amount 
that the program can invest in any one home, a critical need 
with wages rising, also particularly important for rural 
households that can be more expensive to serve.
    It would also--the bill would, second, increase the amount 
available to make essential repairs to homes which are 
necessary for safe, effective, and durable weatherization 
improvements.
    Third, it would raise the cap on solar energy investments 
for a home allowed under the program.
    And fourth, it would remove bureaucratic barriers to 
weatherization improvements.
    With energy prices on the rise through the war in Ukraine 
and severe weather events that can threaten health and safety 
happening more frequently, such as the severe heat waves of 
last week, people across the country need Congress to act on 
this bill.
    Today, as many as one in five eligible households is not 
able to benefit from this program, due to structural problems 
with their home: a hole in a roof, a mold problem. This bill 
would create more opportunities, more flexibility to address 
these problems so homes can be weatherized.
    Reforms in this bill are urgently needed in 2022 to make 
sure that the lowest-income households--many of them rural, 
many people of color, many elderly--that have the greatest need 
of assistance can fully benefit from the weatherization 
assistance program.
    The second bill would amend the National Appliance Energy 
Conservation Act, a cornerstone of U.S. energy policy that 
covers about 60 product categories. The average U.S. household 
today is spending about $500 less per year on their utility 
bills because of existing standards enacted under this program. 
It is one of the most successful programs for reducing utility 
bills for consumers, saving energy.
    Standards have also resulted in an enormous reduction in 
climate change emissions and other pollutants. This bill would 
amend the law with respect to water heaters, one of the largest 
energy-using products in our homes and businesses. It would 
update definitions to clarify the line between consumer and 
commercial water heaters, it would add a new definition for 
solar thermal water heaters. And third, it would authorize the 
development of demand response requirements for water heaters.
    [Audio malfunction.]
    Mr. DeLaski [continuing]. This third element. It is a 
package of amendments, but I will focus on the third.
    Demand response is a well-established technique for 
shifting electricity use away from times of peak demand to 
times when cheap, clean power is available, thus reducing costs 
and improving reliability. By heating water when power is cheap 
and clean, it is possible to save money, reduce demand peaks 
that can threaten grid reliability, and cut emissions from 
fossil generation.
    Historically, some utilities have retrofitted water heaters 
with demand response capabilities for customers at or after the 
time of installation. But the capability could be more cost-
effectively added to products at the time of manufacture. 
Several states have now established or authorized such 
manufacturing requirements.
    This bill would authorize the development of a national 
demand response requirement that could improve business 
certainty for manufacturers and for utilities, facilitate 
broader access to this important technology, and strengthen 
grid flexibility and reliability. To ensure--it could ensure a 
common communications protocol, easing the pathway to large-
scale demand response and significant cost savings for 
consumers. A national requirement would preempt additional 
states from setting their own requirements, helping to promote 
a consistent national marketplace for water heaters.
    Both these goals are urgently needed to approval.
    Mr. McNerney. Yes, would you please wrap up your testimony?
    Mr. DeLaski. I am finished. Thank you very much.
    [The prepared statement of Mr. DeLaski follows:]
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    Mr. McNerney. Thank you.
    The Chair now recognizes Mr. Mulvaney for 5 minutes.

                  STATEMENT OF DUSTIN MULVANEY

    Dr. Mulvaney. Good morning, and thank you for this 
opportunity to discuss an important topic to our environment 
and economy. My name is Dustin Mulvaney. I am a professor at 
San Jose State in the environmental studies department, and a 
fellow at the Payne Institute for Public Policy at the Colorado 
School of Mines.
    My area of expertise is lifecycle impacts, environmental 
justice impacts of clean and renewable energy technologies and 
infrastructures, with a particular emphasis on photovoltaics 
and lithium ion batteries. I have a Ph.D. in environmental 
studies, and a master's in environmental policy, and a 
bachelor's in chemical engineering. I have been an expert 
witness at the California Public Utilities Commission for over 
a decade, and I currently serve on the technical committee for 
ultra low carbon standard for photovoltaics under development 
with the Green Electronics Council.
    We are in the midst of a low-carbon energy transition, one 
that is outpacing even the expectations of professional 
analysts. A growth in photovoltaics, wind turbines, lithium ion 
batteries, electrolyzers for hydrogen, heat pumps, fuel cells 
are all poised for dramatic growth in the coming decades.
    However, many of these same technologies that support rapid 
decarbonization depend on metals, minerals, and materials that 
are fraught with supply chain issues, from accusations of 
forced labor, child labor, geographic concentration, 
disruptions with logistics, environmental impacts from mining, 
and feedstock processing, and material bottlenecks. Demand for 
some of these materials often outstrip supply, and that causes 
price increases and price volatility for key inputs such as 
lithium, nickel, cobalt, polysilicon, and many others, making 
the case that the United States would benefit from growing 
domestic manufacturing and supply chains and lessen dependance 
on imports.
    There is a tremendous opportunity to grow domestic 
industries and reshore supply chains. The United States used to 
be a major producer of polysilicon, a major producer of rare 
earth elements. However, while it is critical to develop these 
resources for clean and renewable energy devices and 
infrastructures through responsible mining, the only way to do 
that is to--is first by updating our 150-year-old mining law 
that has allowed a toxic legacy on public lands to continue to 
this day.
    We also need to ensure that we are utilizing waste streams 
and considering alternative materials. These could be strategic 
opportunities to mitigate impacts of mining through improved 
collection and recycling of equipment and devices that contain 
and could augment supplies of these critical metals, materials, 
and minerals.
    So it is notable to see language in bill H.R. 1599 that 
emphasizes improving technology that reuses and recycles to 
recapture the end-of-life waste flows that would otherwise be 
landfilled or disposed of as hazardous waste. There is much 
room for improvement in recycling in recovery rates for lithium 
ion batteries, for example, which are not just for the electric 
grid and vehicles, but also in, you know, personal electronics, 
consumer electronics, cell phones, power tools, and computers.
    And there are significant carbon emission savings from 
recovering materials from some of these used batteries, as 
well. Yet most of lithium ion batteries go uncollected. In 
fact, lithium ion batteries that are unsorted is a leading 
cause of fires at material recovery facilities, often causing 
local governments millions of dollars in damages.
    It is also fundamentally important to emphasize incentives 
in policy that develop substitutes and alternatives to critical 
minerals as sustainable ways to secure domestic supplies. This 
would help mitigate extensive impacts from extractive 
industries, which can be thinly regulated and environmentally 
damaging. We are already seeing companies move away from 
cobalt, nickel, and manganese in the next generation lithium 
ion batteries, and someday we may see batteries that all 
together avoid graphite and lithium.
    There are a few specific items in H.R. 59
    [sic], as written, that raised concerns in my read.
    First, section 3 says the Department of Energy will need to 
increase domestic production, separation, and processing. This 
is concerning because it suggests DoE would be in charge of 
mining permitting and oversight, activities which should 
continue to be in the domains of the Department of the Interior 
and Environmental Protection Agency. These latter two Federal 
agencies have the expertise and mandate to minimize impacts to 
lands, waters, and communities. The DoE, for example, has no 
expertise with government-to-government tribal consultation 
processes with indigenous communities, and it is hard to 
imagine DoE developing the policies and in-house expertise to 
do this work.
    Second, the language of the bill is very vague, with 
general references to energy and energy systems throughout. The 
text is not exclusive to critical minerals, and makes no 
mention of low carbon or decarbonization as a goal that could 
be applied to development of any mineral resources such as 
natural gas, petroleum, and coal. Failure to be specific here 
would be sending mixed messages to the markets, and undermine 
efforts to grow domestic low-carbon manufacturing and supply 
chains.
    Third, I hope that public policies that encourage domestic 
industries can avoid undermining tribal consultation, cultural 
resource review, and bedrock environmental laws that have 
benefited all Americans simply to expedite mining.
    And finally and importantly, it is key to realize that, 
without ensuring the entire supply chain is domestic, supply 
chains can still be vulnerable to disruption. Domestic mining 
that requires overseas smelting or chemical processing before 
returning to domestic manufacturing is still supply chain 
vulnerable to disruption.
    In summary, we need to be strategic and thoughtful about 
how to grow domestic industries to build a low-carbon economy. 
Failure to do so will undermine the benefits an energy 
transition will bring, and risk leaving vulnerable and 
historically marginalized communities behind.
    Thank you again for the committee, and I look--for hosting 
this discussion, and I look forward to any questions from the 
committee.
    [The prepared statement of Dr. Mulvaney follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. McNerney. Thank you.
    Mr. Greene, you are now recognized for 5 minutes for your 
opening statement.

                 STATEMENT OF JOSHUA C. GREENE

    Mr. Greene. Thank you, Mr. Chairman. Chairman McNerney and 
Ranking Member Upton, members of the subcommittee, my name is 
Josh Greene. I serve as corporate vice president of government 
and industry affairs of A.O. Smith Corporation. And I would 
like to thank you for the opportunity to testify today on 
behalf of the water heating industry, as well as our umbrella 
organization, the Air Conditioning Heating Refrigeration 
Institute.
    By way of very brief background, A.O. Smith is one of the 
world's largest manufacturers of residential and commercial 
water heaters, boilers, and pool heaters, and a leading global 
manufacturer of water treatment and filtration products. We are 
publicly traded on the New York Stock Exchange, and a member of 
the S&P 500. And we are globally headquartered in Milwaukee, 
Wisconsin since 1874. We employ approximately 14,000 people 
around the world at 36 facilities, and do business in over 60 
countries.
    Now, as it relates to H.R. 7962, as the committee knows, 
this is bipartisan legislation that will provide important 
updates and clarifications to the definitions of water heating 
products under the Energy Policy and Conservation Act, or EPCA, 
and the legislation also responds to technology evolutions in 
the water heating industry, and--which will also provide 
business certainty for manufacturers, their consumers, and 
customers. And this is obviously important to us, as an 
industry that--and our customers that use our equipment on a 
daily basis.
    As the committee knows, Congress established the first 
national standards for commercial water heaters as part of the 
Energy Policy Act of 1992. And those statutory definitions are 
now 30 years old. And though DoE--the Department of Energy, 
excuse me--periodically updates the regulatory definitions, 
either by direction from Congress or relying on its delegated 
authority, subject to notice and comment.
    Unfortunately, sometimes the regulatory process has its 
limits. Without periodic updates to the statute to ensure EPCA 
remains up to date with technology, there is a necessary 
component to updating the statute. And one of the criteria as 
it relates to the statute is the binary criteria that is 
currently in law that distinguishes residential and commercial 
water heating equipment. And those are really just based on the 
sole energy input of the water heating equipment, 
notwithstanding that there are various characteristics that 
distinguish residential and commercial water heating equipment, 
such as amperage and voltage, and the end use applications, the 
outlet water temperature, amongst other things. And we 
highlighted that in our written testimony.
    One of the things that DoE did in 2016, in response to some 
other issues, is amend--or really, slightly altered their 
regulatory definitions of water heating equipment, and 
specifically commercial water heating equipment. And what ended 
up happening is that manufacturers were then faced with a 
decision to transition commercial water heating equipment that 
heretofore, for decades before, had been treated as commercial 
and having to meet commercial standards, to potentially 
dramatically shift them to meet residential standards. And that 
would have otherwise created a vacuum in the marketplace, and 
for some manufacturers to stop producing certain commercial 
water heaters all together. And these are products that 
commercial customers had been relying on for decades.
    Thus, manufacturers had to transition very quickly, and 
that caused some uncertainty in the marketplace. And what ended 
up happening from there in 2017 is that the Department of 
Energy, along with manufacturers, came together and decided 
that the best course forward would be to amend the statutes so 
we don't have the ebb and flow and kind of the regulatory 
uncertainty relating to these issues.
    So that put us in a tight position. But over the last 
several years we have been working in earnest with a broad set 
of stakeholders, including with counsel from the Department. 
And H.R. 7962 is the end result of those efforts.
    Now, my written testimony addresses some of the more 
specific updates afforded in the bill, and I am happy to answer 
questions on those. But the core components of that legislation 
are important, and it is really to clarify this definitional 
line between residential and commercial water heating 
equipment, taking into consideration the key characteristics 
the commercial water heating equipment has that is more than 
just the sole energy input.
    The other issue in 7962 includes one refinement that was 
not addressed in previous iterations of the bill, but one in 
which manufacturers support, and that is language--excuse me--
that would otherwise authorize the Department to issue a final 
rule by December 31st, 2024 that will require certain 
residential electric storage water heaters to have the 
capability to participate in utility demand response programs, 
but only if that requirement is technologically feasible and 
economically justified.
    This provision represents an opportunity to establish a 
national standard for a narrow product class of innovative 
water heating technology that heretofore is subject to--and 
increasingly by--state-by-State regulation. And that, 
unfortunately, presents some compliance obligations and a 
quagmire for manufacturers. And having a national standard and 
the benefits of the preemption that is embedded in EPCA as a 
threshold matter is better for manufacturers, not only for 
business certainty, but it allows us to have one standard, as 
opposed to multiple standards moving forward.
    So I will close with the following. Technology and 
innovation in our industry have outpaced statutory definitions 
for the most part, and these definitions are no longer up to 
date when it applies to commercial water heating equipment. And 
more broadly, H.R. 7962 offers a bipartisan and broad 
stakeholder solution to update the EPCA.
    Once again, on behalf of A.O. Smith and the water heating 
industry, I appreciate the opportunity to testify on this 
important bipartisan bill, and I appreciate Congresswoman 
Dingell and Mr. Walberg for their leadership in this regard. 
Thank you.
    [The prepared statement of Mr. Greene follows:]
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    Mr. McNerney. Thank you.
    Mr. Pugliaresi, you are now recognized for 5 minutes.

                 STATEMENT OF LUCIAN PUGLIARESI

    Mr. Pugliaresi. Chairman Pallone, Chairman McNerney, 
Ranking Member Upton, Ranking Member Rodgers, members of the 
subcommittee, I want to thank you for the opportunity to 
testify on this proposed legislative--these proposed 
legislative initiatives.
    We are now in the midst of an energy crisis that may last 
for years to come. A mix of forces have led to this crisis, 
including accelerated demand as the world economies rebound 
from the pandemic lockdowns, sustained under-investment in 
fossil fuels, and a fundamental misunderstanding of the impact 
of government policies on energy markets. Clearly, Ukraine war 
has exacerbated this crisis, but these disruptions to our 
energy systems were well underway before the war began.
    If I could have the first slide, please.
    [Slide]
    Mr. Pugliaresi. Thank you. As you can see here, rising 
prices are especially harmful to low-income households: 40 
percent of these households are seeing very rapid increases 
between 2021 and--2020 and 2021; 2022 is a nightmare.
    Next slide, please.
    [Slide]
    Mr. Pugliaresi. Look, we have put an enormous amount of 
effort at EPRINC in understanding the scale challenges of 
moving to net zero. But this graphic shows you that, in the 
absence of large supplies of natural gas, we would only have 
enough fertilizer to feed about three billion of the planet's 
eight billion people. Large supplies of low-cost natural gas 
are critical to food security.
    I would like to also point out that four pillars of modern 
civilization--cement, plastics, ammonia, and steel--have no 
cost-effective substitute.
    Next slide.
    [Slide]
    Mr. Pugliaresi. You can see here the rising fertilizer 
prices are also spiking food costs, and they are also 
increasing--you know, the increase in natural gas with ammonia 
prices and corn. So we have a kind of perfect storm of rising 
prices from higher fossil fuel prices.
    Next slide.
    [Slide]
    Mr. Pugliaresi. OK. We need a massive amount of critical 
minerals in order to engage in a rapid transition to the fuels 
and energy sources of the future. As noted in my written 
testimony, most of these minerals and materials for the energy 
system have been sourced outside of the OECD. In this regard, 
H.R. 1599 appropriately recognizes that the energy transition 
offers the potential to somewhat insulate us from volatility 
and supply chain disruptions associated with oil and gas 
production. But it will introduce a new set of supply risks.
    It is appropriate that these critical minerals and 
materials be fully incorporated into the Department of Energy's 
ongoing responsibilities to bolster supply--you know, to 
bolster U.S. energy security.
    Next slide.
    [Slide]
    Mr. Pugliaresi. Yes. Any of us who thought that, by moving 
to the these fuels of the future, these energy sources of the 
future, that we would eliminate risk for volatility can just 
look at what is happening now.
    In fact, we issued a chart of the week today that looked at 
nearly a doubling in the cost of the Tesla battery. And you can 
see that price indices for key electric vehicle battery metals 
have been just skyrocketing in cost. It is not going to relieve 
our problems with the volatility and supply risks.
    Next slide.
    [Slide]
    Mr. Pugliaresi. One way to get down gasoline prices is to 
build out the infrastructure and the capacity of the North 
American oil and gas production platform.
    As you can see here, between 2010 and 2020, the United 
States--the United States alone--provided over 80 percent of 
world incremental demand for petroleum. And it was in that 
period that we had extremely low gasoline prices. The North 
American Petroleum Platform is an instrument--sort of, if you 
like, a strategic asset for the United States. It is 
essentially the arsenal of energy security.
    Next slide.
    [Slide]
    Mr. Pugliaresi. The U.S. is also a major supplier of 
natural gas, not just to our industry, but to the world market. 
Right now--if you see the sort of negative sign, there is 
actually a plus for exports. We are exporting ten billion cubic 
feet a day. This is roughly equivalent to 40 percent of 
European requirements for their import needs for natural gas.
    And I will find--one last slide, next slide.
    [Slide]
    Mr. Pugliaresi. I know that we are looking for ways to 
reduce gasoline prices, and probably you are tired of hearing 
from us on this. But one way that we could take 30 percent--
$0.30 off the price of gasoline, much more than a gasoline tax, 
would be to make a small adjustment in the renewable fuel 
standard, to take it down to close to the market-based level, 
which would be about ten percent. This will take back some of 
the high compliance costs and other factors in the market that 
are driving up gasoline prices.
    And with that, Mr. Chairman, I conclude my remarks.
    [The prepared statement of Mr. Pugliaresi follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Mr. McNerney. I think the witness.
    Mr. Lieberman, you are now recognized for 5 minutes.

                   STATEMENT OF BEN LIEBERMAN

    Mr. Lieberman. Chairman Rush, Mr. McNerney, Ranking Member 
Upton, and members of the subcommittee, thank you for the 
opportunity to testify today. My name is Ben Lieberman, and I 
am a senior fellow at the Competitive Enterprise Institute, a 
non-profit, non-partisan public policy institute committed to 
advancing the principles of free markets and limited 
government.
    Before that, I had the privilege of serving on this 
committee from 2011 to 2018, where I worked on several DoE 
issues under Chairman Upton, and for a shorter time under 
Chairman Walden. And to all of you who are retiring, best 
wishes in your well-earned retirements.
    I would like to use my time to just three of the DoE 
programs that are the subject of some of the bills being 
discussed today: appliance efficiency standards, weatherization 
assistance, and loans and loan guarantees.
    If there is a common theme, it is that these programs were 
created to address market failures that have proven to be 
considerably overstated, and thus the benefits from government 
involvement are minor and not worth the burdens to consumers 
and taxpayers. I would like to start by making a few general 
points about DoE's appliance efficiency programs, which have 
been around since the 1970's.
    It is important to recognize that, for virtually every 
regulated appliance, there already are numerous models on the 
market that go above and beyond the current Federal standards 
and there are the Federal Trade Commission energy use labels 
and the Energy Star program that make it easy for consumers who 
want ultra-efficient appliances to identify and choose them. 
But new standards only serve to force that choice on everyone, 
whether the extra cost makes sense for them or not.
    One size does not fit all, and we all know our own 
individual circumstances and preferences better than any DoE 
regulator could. Not every homeowner comes out ahead with 
efficiency standards. We have seen that standards have raised 
the purchase price of appliances, in some cases more than 
consumers can expect to earn back in the form of energy and 
water savings. In addition, some standards have compromised 
product performance, such as those that led to dishwashers 
taking multiple hours to finish a load. And at this point, most 
major home appliances have been subjected to two, three, four, 
five rounds of successively tighter standards.
    So the risk of diminishing marginal returns, even negative 
margin returns, is greater than ever. I am particularly 
concerned that these DoE efficiency programs are now being 
hijacked in pursuit of climate agenda, with potentially adverse 
consequences for consumers. As we see with the recently 
proposed residential furnace rule, which might be the subject 
of a future hearing, social cost of carbon is now being used as 
a thumb on the scale in favor of new rounds of more stringent 
standards that threaten higher costs and shift the focus toward 
environmental goals, rather than what is best for consumers.
    Especially troubling--and again, something we see in the 
proposed furnace rule--is the effort to use these standards to 
eliminate the option of natural gas appliances, even though 
they are the best choice for many consumers since natural gas 
is generally cheaper than electricity.
    Simply put, it is not the role of government to dictate 
choices and tell homeowners what they can and cannot have in 
their homes.
    By the same token, I would oppose provisions in H.R. 7962 
mandating demand response capability in water heaters when many 
homeowners do not want this feature and, in fact, some would 
strongly object to it. We need to respect consumer choice, and 
this measure does not.
    Demand response is also something that moves us away from 
the original purpose of the Appliance Standards Program, and is 
yet another example of mission creep toward climate policy.
    With regard to other DoE programs that are the subject of 
today's legislative hearing, weatherization and loan programs, 
I just don't believe we are getting very much bang for the 
buck. In particular, the weatherization program is one in which 
economists and others have questioned whether the expenditures 
exceed the benefits. As it turns out, most homeowners, even 
many low-income ones, take reasonable steps on their own to 
prevent wasting energy, and thus the marginal benefit of 
government programs is limited.
    In addition, with so much money already being allocated to 
weatherization programs, I think we are already overspending on 
weatherization. And therefore, H.R. 7947 is difficult to 
justify.
    I would like to conclude by emphasizing what I think is an 
obvious point, and that is that the best thing Congress can do 
right now to save consumers money on their energy bills is not 
demand response to water heater mandates, or free weather 
stripping, or more DoE loans, it is to get these damn prices 
down.
    Now, I was working on this committee during a really 
tremendous transition, where we went from very real concerns 
about America running out of oil and natural gas to this 
incredible shale revolution. But now we are seeing that 
revolution neutralized by Federal policies blocking domestic 
energy production and infrastructure. It is time to put energy 
affordability first, and that can be done by once again 
unleashing American energy.
    To the extent that we do want to make changes to DoE 
programs, the focus should be on reining in the regulatory 
reach and strengthening the consumer and taxpayer protections 
in the law. Thank you.
    [The prepared statement of Mr. Lieberman follows:]
   [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Mr. McNerney. I thank the witness. The Chair--we have 
concluded our opening statements. We will now move to member 
questions.
    Each member will have 5 minutes to ask questions of our 
witnesses. I will start by recognizing myself for 5 minutes.
    As we move toward achieving a national zero emissions 
energy system, securing a domestic supply of critical materials 
needed for solar cells, wind turbines, batteries, and other 
renewable components will be a significant challenge.
    Dr. Mulvaney, what safeguards are needed to ensure that the 
domestic production of critical materials is done responsibly?
    And what role, if any, do you think the Department of 
Energy should have in that mission?
    Dr. Mulvaney. I think, as I stated in my testimony, you 
know, it is a very difficult challenge, I think, to balance 
these, you know, our climate objectives and land use impacts of 
domestic mining. And I think we just really need to make sure 
that we tighten up a very old law.
    I mean, the 1872 mining law, you know, is very unclear on, 
for example, reclamation or legacy mine tailings. And the EPA, 
you know, is cleaning up many, you know, legacy tailings piles 
across the American West from, you know, historic mining of 
public lands. So I think that is really important.
    And I am also hearing in the public discourse a lot of 
conversation about how the National Environmental Policy Act is 
holding up much of mining efforts. And I just don't see that as 
a valid--not supported by the empirical record. It is, you 
know, protecting the National Environmental Policy Act, and it 
is the policies that are--that emerge out of that, the Clean 
Water Act, and some of the Endangered Species Act and the 
National Historic Preservation Act. I think these are really 
important policies, and they have done very well for the 
American public to date.
    So now, as far as the Department of Energy's role, you 
know, the Department of Energy could help perhaps finance some 
of these mining efforts if we find that some of these sites, 
which, you know, could be justified, sustainable mining 
practices and things like that, perhaps there are vehicles that 
the Department of Energy could use, like the loan program, for 
example, to help develop some of these resources.
    But, you know, I think we are also missing a big piece of 
this, which is the recycling and materials recovery part. There 
seems to be in this conversation about securing critical 
minerals, metals, and materials, just more production and more 
extraction, when we are really letting a lot of these resources 
slip through the cracks, and they are getting landfilled and 
sent to----
    Mr. McNerney. OK, thank you for answering that question.
    I have long advocated for policies to address the energy 
water nexus, which, among many other things, relates to the 
energy required to heat water in a home. Mr. DeLaski, and your 
testimony is focused on the electricity savings that could be 
achieved by increasing the energy efficiency of water heaters. 
But can you speak to how increasing the water efficiency of 
appliances and fixtures in a home or building could also lead 
to energy savings?
    Mr. DeLaski. Absolutely. Setting water efficiency standards 
for a range of products can also drive enormous energy savings, 
because we use a lot of energy in this country to heat water 
for our homes and for our businesses.
    Your State, California, of course, has led work there. The 
dry West is facing historic drought, and the opportunity to 
save water is important not just for energy savings, but also 
for ensuring that we have water resources to meet the needs of 
the dry West. And standards set by both the Department of 
Energy and by individual states like--such as California, 
Colorado, Arizona, and others are driving considerable water 
savings today for a range of water-using devices.
    Mr. McNerney. Well, could you address the alternatives to 
reducing water waste while people are waiting for the water at 
the tap to heat up?
    Mr. DeLaski. The alternative--I am sorry, could you reState 
the question, please?
    Mr. McNerney. Well, when you turn on your hot water, you 
got to wait for a minute or two for the water to heat up, 
unless you have a demand--on-demand water heating. What are the 
alternatives to eliminate that waste?
    Mr. DeLaski. Right. Well, one of the alternatives is to--as 
you said, on-demand water heaters are an option for that. 
Another alternative is using recirculation techniques to 
reduce--you know, to reduce water waste. But those are two 
options that I am familiar with.
    Mr. McNerney. Well, my time is expired. The Chair will now 
recognize Mr. Upton, subcommittee ranking member, for 5 minutes 
to ask his questions.
    Mr. Upton. Thanks, Mr. Chairman. It is always good to be 
with you.
    Mr. Lieberman, welcome back. It is good to see you, that is 
for sure.
    As you know, NERC is reporting that we are at increased 
risk of blackouts this summer--perhaps, as I said, even this 
weekend, as our electric grid becomes more unstable. Baseload 
power plants like coal, nuclear, and natural gas are being 
forced into early retirement, with weather-dependent wind, 
solar batteries taking their place, we hope.
    Some believe that we ought to stabilize the electric grid 
with demand response, as we know, which gives the grid 
operators the ability to remotely monitor and control our home 
appliances to balance supply and demand. What do you expect the 
consumer protection and privacy concerns associated with demand 
response are going to be?
    Mr. Lieberman. [Inaudible.]
    Mr. Upton. I mean, you got to use your--you should know 
best of all.
    Mr. Lieberman. I should know this by now.
    Mr. Upton. Push the button.
    Mr. Lieberman. A man's home is his castle. A woman's home 
is her castle. These should always be decisions made by the 
homeowner, and never the government. It is really as simple as 
that. And sure, we can save energy if utilities can shut the 
appliances on and off. But that is not what consumers want.
    And I should add I am not opposed to demand response 
capability. I am only opposed to mandating it. Let consumers 
who want this feature, who think that they can save money with 
it, let them go ahead with it. But I can tell you, as a 
homeowner myself, this is--I wouldn't want to be a guinea pig 
in this experiment.
    Mr. Upton. It reminds me of the saying, ``If Mama ain't 
happy, nobody's happy.'`
    Do you think it ought to be mandated by the Federal 
Government, or should it be a choice, then?
    Mr. Lieberman. I think that is the problem. It shouldn't be 
mandated by the Federal Government. There is very real privacy 
issues here.
    Also, when I hear about this scheme, it strikes me as very 
convoluted. I really question whether it can work as well as 
some are hoping. It absolutely has to be voluntary.
    And to me, I think there is almost a philosophical divide 
here. There are people here that argue this is such a great 
idea we need to mandate it. But I am the one who is saying, if 
it needs to be mandated, it is probably not a great idea.
    Mr. Upton. Mr. Pugliaresi, I want to give you the 
opportunity to address the energy crisis that we are facing 
today. We use fossil fuels for everything in our economy, from 
plastics and fertilizer--your graphs were terrific. What are 
some of the near-term solutions to record-setting energy prices 
that we ought to be looking at and focused on?
    We know about Keystone, and we know about permitting 
infrastructure needs with NEPA reforms sending the right 
signal, but what are some of--what are some basic things that 
we ought to be focused on, and what might you suggest that we 
do?
    Mr. Pugliaresi. Yes. So first we need to send the right 
signals to the marketplace. We need to restore the leasing 
program. We need to give confidence that the North American 
Production Platform can have an expansive, cost-efficient 
expansion over time. And the government is heavily involved in 
affecting that outcome.
    We need to permit a lot more natural gas pipelines. The 
Marcellus, West Virginia, Pennsylvania, Ohio, these are 
enormous gas reserves. They have production levels that look 
like Saudi Arabia if they were oil. We can double or triple 
U.S. natural gas production in the United States. We can keep 
our prices low, and we can supply the world.
    We are, as I said, an arsenal of energy security. But we 
have to change the policies. We need to give assurance in these 
constantly interventions--I mean, I know you are quite familiar 
with the Line 5. These constant regulatory and political 
attacks on Line 5, they create risk in the marketplace. People 
start to wonder what is next?
    Mr. Upton. Well, can you imagine--for the folks that don't 
know about Line 5, this is a line that connects the upper 
peninsula with the lower peninsula of Michigan. And if--and 
that line needs to be replaced, there is no question about 
that. It was built in the late 1950's, I think it was, 60-some 
years ago. But I can't imagine the impact on gas prices in the 
Midwest if that line was simply cutoff, and not replaced, in 
terms of the impact at that marathon refinery in southeast 
Michigan.
    Mr. Pugliaresi. Independent estimates show shutting down 
that line would increase consumer costs by $58 billion.
    Mr. Upton. Yes, it is something else.
    Mr. Pugliaresi. We can do more for the fuel supply. We 
should try to get a more national standard for fuel specs.
    Mr. Upton. Let me ask you one more question in my remaining 
15 seconds or so.
    Microchips. You know, we have got legislation that passed 
the Senate big time more than a year ago. Does this have an 
impact on energy? Are you able to get something like this back 
through so we can actually build it ourselves versus relying on 
China?
    Mr. Pugliaresi. Absolutely. A reliable supply of microchips 
adds a lot to the efficiency of the--of our entire production 
process: all the inputs into petroleum production, all the 
inputs into industrial production. So it is a very important 
supply chain issue.
    Mr. Upton. I yield back. Thank you, Mr. Chairman.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes Mr. Pallone, full committee chair, for 5 minutes to 
ask questions.
    Mr. Pallone. Thank you, Chairman McNerney. I wanted to 
start with Mr. DeLaski, and I have got three separate questions 
here, so maybe a minute or so for each of you to respond, if 
possible.
    So, Mr. DeLaski, Representative Dingell's bill, H.R. 7962, 
contains provisions for water heater demand response 
requirements. Demand response, as I understand, is an important 
tool to lower consumer bills, fight climate change, and address 
grid resilience and reliability. So could you talk to us about 
a minute about the importance of demand response, and 
especially as we face more frequent weather events, extreme 
weather events that place a lot of stress on the grid? How can 
demand response help with emergency events and ensure grid 
stability?
    [Pause.]
    Mr. Pallone. I don't know if he heard me.
    Mr. DeLaski. Demand response is an incredibly important 
resource for ensuring grid stability.
    As we--as the peak--as peak demand goes up and that 
happening as--on a hot weather event, that strains the power 
grid. It can lead to outages as we faced risk of this summer
    [inaudible] during this hearing. It also drives up costs 
enormously. That is the most expensive power, is the marginal 
power, however it is generated.
    Demand response allows market to move that demand to 
another time. And water heaters are a natural battery. Why not 
use that battery to charge up that water heater with hot water 
when power is cheap, and when it is produced by clean 
resources? That is what demand response programs can do.
    This bill would make those programs more possible. It 
doesn't require them. It doesn't mandate them. It simply makes 
them more possible by allowing for the Department to consider 
setting demand response requirements for water heaters, as are 
manufactured by companies such as A.O. Smith.
    Mr. Pallone. Well, thank you. Let me go to Mr. Frias.
    The Tribal Energy Loan Guarantee Program, while well-
intentioned, has not guaranteed a single loan in its 17-year 
history. We know that. So can you describe for us again in 
about a minute or so the potential importance of this program, 
why it hasn't delivered on the promise, and whether you think 
the changes proposed in the Tribal Energy Investment Act will 
ensure that tribes finally have access to energy project 
financing?
    [Pause.]
    Voice. Microphone.
    Mr. Frias. Apologies. Thank you for the question, Chairman 
Pallone. And it is a fair question.
    Looking back at the history of the tribal program, though, 
it was authorized in 2005, but it was not appropriated for 
until 2017. And the first solicitation did not go out until 
2018. It was making good progress in Indian country, and then 
the pandemic hits.
    You know, and by comparison, I would say that the NIGC took 
three or four years, National Indian Gaming Commission, to have 
regulations and be set up and to be going and working to 
regulate Indian gaming. So a year for them to get going, once 
they had staff and funds, is a pretty good turnaround.
    With many tribes working remotely or shifting funds to 
address the impacts of the pandemic, it is understandable that 
the program has faced delays in the past several years.
    I can tell you that, since I came on as executive director 
of NAFOA in July of last year, that we have seen strong 
interest from tribes about this program, interest in meeting 
with DoE, LPO, the Office of Indian Energy, specifically at our 
conferences, where they are speaking on panels, specifically 
our spring conference in Seattle, to talk about energy 
programs. There is interest in energy programs in Indian 
country.
    And one of the great things about this program is that it 
is technology agnostic, right? Whether it is extraction, 
whether it is renewable, the program will work to find it. And 
it addresses a critical problem in Indian country, not just for 
energy development, but for economic development across the 
board, and that is access to capital.
    And so this program is important to Indian Country. You 
know, without the pandemic, I think we wouldn't see the history 
you are addressing there.
    Mr. Pallone. Just quickly, Dr. Mulvaney--I am talking now 
about H.R. 1599, the Securing America's Critical Minerals 
Supply Act--does that meet the standards that we want to see 
for supporting domestic critical minerals supply chains?
    Are there any changes to the bill that--so it does not 
inadvertently contribute to harmful mining practices?
    And what changes do you think must be made to guarantee the 
bill truly supports clean energy production, if you will?
    Dr. Mulvaney. I think there could be more specificity 
about--around what energy, minerals, or critical minerals are 
being supported. I think there are, you know, ones that need 
more attention than others.
    There also could be more language around decarbonization 
and low carbon energy systems that help define that, as well.
    Mr. Pallone. Thank you, Mr. Chairman.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes Mrs. Rodgers for--full committee ranking member, for 
5 minutes to ask questions.
    Mrs. Rodgers. Thank you, Mr. Chairman.
    First and foremost, I am a mom. We recently remodeled my 
kitchen, our kitchen. And I didn't like my choices of 
dishwashers. And today, because of what was available, we wash 
most of our dishes by hand. But I want to get back to some of 
my questions that I think are really important for energy 
reliability and affordability.
    Mr. Pugliaresi, I wanted to thank you for being--returning 
to the committee. I appreciate your testimony. Last year you 
testified in front of our committee, and you warned--you said 
that it was important for us to look to the example of Germany 
and their approach in imposing various top-down policy 
dictates, shutting down certain energy sources, and the result 
of being more dependent upon Russia. You noted that spiking 
energy costs there and elsewhere were a warning for us, as U.S. 
policymakers, and that was months before Russia invaded 
Ukraine.
    Americans now see the risk and the--and we see the impact 
on reliability and affordability. In the United States there 
has been an unrelenting drive to shut down fossil energy with 
weather-dependent wind and solar. Do you think the policy 
debate over this rush-to-green movement would benefit from 
authoritative information on what is necessary to secure energy 
resources, including critical minerals?
    Mr. Pugliaresi. Absolutely. We need a much better 
understanding of the risks.
    By the way, Germany has now fired up its major coal plants. 
And from the folks we talk to there, their climate program is 
delayed by at least a decade.
    Mrs. Rodgers. So in the late 1970's, the Department of 
Energy was organized as a cabinet agency to oversee national 
energy policy, and specifically address energy supply 
emergencies. H.R. 1599 provides a new function in the 
Department's core statute to evaluate energy resource 
vulnerabilities, both for critical materials of renewables and 
for traditional energy.
    How do you think that this might be useful in putting 
energy security back at the center of our debate?
    Mr. Pugliaresi. Right. If we move to a set of systems where 
we are reliant on these critical materials and minerals, we are 
particularly reliant on foreign sources that are not 
necessarily friendly, actually might be quite hostile to the 
United States. We need a careful assessment of what that means 
to our energy security and the reliability of our energy 
complex.
    Mrs. Rodgers. Thank you. So--and we hear from our 
colleagues on the other side of the aisle and the 
Administration that a move to renewable energy will reduce 
energy price volatility, which we are all experiencing at the 
gas pump these days. Is the answer to record high gas prices to 
increase dependance on critical minerals and materials for 
renewable energy?
    Mr. Pugliaresi. It is very difficult to hide from the 
volatility of any commodity. The way we--on our traditional 
energy complex is--we had a large strategic petroleum reserve. 
We had an expansive program to expand U.S. oil and gas 
production, diversified production, not just around the North 
America, but around the world. These are the features that add 
to your energy security.
    Mrs. Rodgers. Thank you, thank you.
    Mr. Lieberman, I appreciate your testimony. One of the 
questions I have about the legislation amending the 
weatherization program concerns taxpayer stewardship. When 
Congress reauthorized the program in 2020, it allowed for a 
limited program to help ready homes for weatherization with a 
sunset and safeguards, such as a minimum investment to savings 
ratios. We have not had enough time to evaluate the program yet 
in the bill before us today.
    But the sunset is eliminated. Minimum investment to savings 
ratios is eliminated, and the whole--a new program is added. Do 
you think this reflects careful spending of taxpayer dollars?
    Mr. Lieberman. When I look at this new bill, to me it looks 
like they are clutching at straws, looking for rationales, for 
more money that don't really make a lot of sense to me, that we 
have to spend money now on houses to get them ready for 
spending more money later on. This seems kind of a reach. And 
the weatherization program is already very heavily funded.
    I think it makes a lot of sense to see what we are getting 
for the money that has already been allocated before we throw 
more that way.
    Mrs. Rodgers. Thank you. Mr. Pugliaresi noted that behind 
these drives to fund electrification programs, it actually 
increases high--increases electricity rates, and it increases 
the burden on the poor than--it disproportionately impacts the 
poor. Do you think Congress should evaluate risk of expanding 
Federal programs that will raise electricity on low-income 
families and workers?
    And I have expired my time.
    Mr. Pugliaresi. I think energy poverty should always be a 
front burner issue whenever energy policy, climate policy is 
being discussed.
    Mrs. Rodgers. Yes. Thank----
    Mr. Pugliaresi. We are already seeing energy price 
increases more than expected.
    Mrs. Rodgers. OK, thank you. Thank you. Let's stay focused 
on reliability and affordability.
    I yield back.
    Mr. McNerney. The gentlelady yields back. The Chair now 
recognizes the gentleman from California, Mr. Peters, for 5 
minutes to ask questions.
    Mr. Peters. Thank you, Mr. Chairman, and thank you, Ranking 
Member Upton.
    First I would like to discuss one of the bills before us 
today, H.R. 8053, the Guaranteeing Resilient Installations for 
Defense Act, or GRID Act. I am happy to be discussing that 
today. I worked on--pretty hard on that over the last two 
years, and I want to thank the committee leadership and staff 
for working with my office to find a path forward on this 
important piece of legislation.
    As many of you know, my district in San Diego is host--is 
proud to host one of the largest military footprints in the 
country. One facility in my district, Marine Corps Air Station 
Miramar, is pioneering the Department of Defense's investments 
in the adoption of renewable energy and resilient energy 
infrastructure.
    Miramar's collaboration with relevant stakeholders and 
staff has culminated in the design of one of the most 
innovative microgrids in the Department of Defense. The project 
constructed a power plant with both diesel and natural gas 
generation to supplement existing landfill gas and solar power.
    Also, the station built an energy and water operations 
center to manage the microgrid and other utility control 
systems at Miramar.
    These capabilities have already demonstrated their value to 
the local community, as well. In the summer of 2020 the 
microgrid was used to assist local communities by preventing 
rolling blackouts during a heat wave, proving its utility on a 
larger scale. I am confident this experience informed the 
written testimony provided by the Department of Energy today 
when it stated that this bill would, ``address the significant 
security disadvantages for facilities located throughout the 
United States.'`
    The microgrid at MCAS Miramar enables the installation to 
use onsite renewable resources and power generation to supply 
its critical base loads when utility power is not available. 
And when the microgrid system is grid-connected and utility 
services are available, the system reduces costs for the base.
    The air station's success incorporating renewable energy 
solutions into its electric grid provides proof of concept for 
the problem the GRID Act solves. It provides the Secretary of 
Energy, in coordination with the Department of Defense, to 
enter into contracts and agreements to improve the resilience 
of defense critical electric infrastructure, and reduce the 
vulnerability of critical defense facilities to the disruption 
of the supply of electric energy to those facilities.
    I wanted to ask Dr. Mulvaney. In your testimony you note 
how the GRID Act enhances national security. Can you elaborate 
on how you believe investments in the resilience of defense 
critical infrastructure and possible investments in local 
electricity infrastructure improves national security?
    Dr. Mulvaney. Yes. You know, I spent time looking at issues 
related to ratepayer, and I am very sensitive to cost issues. 
So, you know, it was nice to see in that bill that the--as 
proposed, that the Department of--or at least the Federal 
Government could potentially be investing in local communities 
to enhance grid resilience.
    We have quite--you know, thinking particularly from the 
California perspective, we have quite big challenges on our 
plate in the State, with wildfires and moving power to where it 
needs to be on certain days because of those wildfires.
    So I think making those investments and making sure that 
the lights stay on as consistently as possible are really key 
to national security. And they help the rural communities that 
also live in and around these bases also keep the lights on, 
which is, I think, critically important for national security 
and human well-being.
    Mr. Peters. Maybe the benefits to an average household from 
that kind of strategy.
    Dr. Mulvaney. I am sorry. Could you repeat one more time?
    Mr. Peters. Elaborate a little bit more on the benefits to 
an average household of that kind of strategy.
    Dr. Mulvaney. Well, electricity costs are--you know, in 
California--are some of the highest in the country. And having 
investments not be rate-based by the utility, but instead 
coming from outside will, I think, help lower those bills, or 
keep them where they are at, keep them from increasing, which--
you know, electricity infrastructure is expensive. And we have 
a very old electricity system that we have connected all of us 
together with, and have, you know, given us so much benefit. 
But it is time for us to start upgrading it, and modernizing 
it, and giving us the ability to, you know, isolate parts of 
the electric grid, for example, where these power outages are.
    So that would be another benefit to these communities, is 
that they actually are able to go through these hot days we 
just had. For example, in the Santa Cruz mountains, where--near 
where I live, we had--the whole Stanford campus was down on 
power. It was 100 degrees yesterday, and it was because of a 
relatively small wildfire going right in and around the 
transmission lines. So, you know, we got to reinvest here.
    Mr. Peters. Thank you, Dr. Mulvaney. I appreciate it.
    And I yield back. Thank you.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentleman from Texas, Dr. Burgess, for 5 minutes 
for his questions.
    Mr. Burgess. Thank you, Chairman.
    And Mr. Pugliaresi, let me just ask you a couple of 
questions. We are doing a hearing today. We are kind of in the 
middle of an energy crisis. A lot of people don't understand 
why we are in the middle of an energy crisis. Two years ago 
this was not a problem. Today it is a serious problem. It is 
hard to tell from the bills that we have in front of us that we 
are taking this seriously, and we don't have--as has been 
pointed out by Ranking Member Upton--we don't have the 
Department of Energy here, which is really a shame, because we 
should be able to ask them questions.
    But what is your opinion of the bills that we are 
considering today? Are they going to be able to address this 
emergent crisis that we have in energy in this country?
    Mr. Pugliaresi. Many of these bills, particularly--well, I 
guess, 1599 can be very helpful in addressing problems that 
will emerge over time. But this is not the critical problem 
facing the country. We are not going to move through a 
transition as many people expect.
    Fossil fuels are embedded in the U.S. and the world 
economy. They come with a lot of favorable characteristics, 
particularly the density and the cost effectiveness of their 
use. And so there will be--it will be very difficult to do a 
rapid transition. These fuels are going to be with us for 
years. Just how they end up costing us as a country is going to 
depend a lot on government policy. And if we have a policy that 
seems to think that we can stop the production of oil and gas 
before the alternatives are cost effectively ready, we are 
going to be in a lot of hurt.
    Mr. Burgess. Well, I think we are seeing that, as being 
evidence, as you pointed out, I think, on your slide, that some 
of us are inconvenienced, but some people are devastated by the 
economic effects of this ill-considered rapid transition. It is 
almost as if, rather than scientific thinking, it was magical 
thinking. We can now get our energy from different sources 
without doing the hard work and making the investments along 
the way.
    Mr. Pugliaresi. I couldn't agree more. I mean, we just did 
some work the other day on biogas, just biogas for electric 
generation. In order to meet the goals of 2050 under net zero, 
we are going to have to take what we now dedicate, which is 
about, in terms of land mass for bioenergy, for power, the land 
mass of France, and add to it the land mass of Mexico.
    These kinds of requirements are just enormous, and they are 
going to take decades and decades to figure out the best way to 
proceed. The notion that we can do this quickly, in my view, is 
not just aspirational. It is somewhat delusional.
    Mr. Burgess. Well, and I wasn't going to go here, but since 
you brought up the word ``delusional,'` it is delusional to 
think that you can turn everything off in an industry as 
complex as the traditional energy markets and then say, oh, 
gosh, I made a mistake, just kidding, turn it all back on. It 
doesn't work like that. These investments take time. They are 
capital intensive. And right now you don't have the economic 
climate that is willing to make these long-term investments 
when the Federal Government has acted in the way it has.
    Mr. Pugliaresi. It is a serious problem, and we are going 
to have to rethink it.
    Mr. Burgess. Mr. Lieberman, I was so grateful you mentioned 
the point at which, on this committee, the consideration was we 
are running out of natural gas. The Energy Policy Act of 2005 
was predicated on the fact that we have to import natural gas 
from the North Sea, because we didn't have enough, we were 
running out of feedstock for fertilizer, and how policies that 
really were developed in this committee--so we are capable of 
that type of deep thinking--policies developed in this 
committee actually led to an abundance of natural gas after the 
fracking and the shale revolution.
    So it is disconcerting to see people willing to absolutely 
discount what had worked when we knew we were getting into 
trouble, as you pointed out earlier, in the last decade, and 
then to completely undo it with no thought from where we 
backfill this supply.
    Mr. Lieberman. Absolutely. The transition when I was on 
this committee was incredible. There was bipartisan concern 
that America was running out of oil and natural gas. Along 
comes the shale revolution, and some of the changes in the 2005 
energy bill facilitated that to an unexpected abundance. Now we 
are seeing that abundance under threat.
    One thing that Mr. Pugliaresi mentioned was the tremendous 
amount of natural gas bottled up in Appalachia, just a couple 
of states away from states like New York and into New England 
that desperately need it. But the infrastructure isn't there. 
Most of the bills today deal with giving the Department of 
Energy more regulatory authority and more spending authority. 
That is not what we need. We need BTUs being made in America 
and being shipped to consumers.
    Mr. Burgess. I couldn't agree more. So they don't have to 
buy them from Russia, absolutely.
    Thank you, Mr. Chairman. I will yield back.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentleman from Pennsylvania, Mr. Doyle, for 5 
minutes to ask questions.
    Mr. Doyle. Well, thank you, Chair, and also to Ranking 
Member Upton for holding this important hearing.
    Reliable and affordable energy is critical to both families 
and businesses, and the key to ensuring that we have reliable, 
stable, and affordable energy is to invest in domestic, clean 
energy production, domestic supply chains, advancing new 
technologies, and making our grid, businesses, and homes more 
efficient.
    I am also pleased that we are talking today about critical 
minerals and their supply chains today. It is vitally important 
that we proactively work to establish a domestic supply chain 
for critical minerals. If we are to build a cleaner energy 
future, and wish to be truly energy independent, we must ensure 
that the entire lifecycle of critical infrastructure is made 
here in the United States.
    With that said, Dr. Mulvaney, can you expand on how we 
could design a system at the Federal level, or incentivize 
better recycling of critical materials?
    Dr. Mulvaney. Well, I think, in general, with a lot of 
these electronic products, they are not prohibited from going--
entering into landfills, for example. We don't have national 
electronics recycling policy. We have hazardous waste policy.
    But I think if we were to have a comprehensive program like 
some states do in recovering all electronic products, or trying 
to do what they can with that, I think that that could go a 
long way to augmenting the supplies that we are going to need.
    Mr. Doyle. You know, a second important piece of this 
puzzle will be developing new materials to replace rare, 
critical materials. Can you talk about how we can help 
companies who have innovative technologies get into the market?
    Dr. Mulvaney. That is a great question, and I am not sure I 
have the full set of solutions there. But I think that we need 
to reward companies that are being more material use efficient.
    So for example, solar panel over the last ten years uses 
ten times less silver in it than it did a decade ago. And that 
is because silver is expensive. So companies have that internal 
motivation. But imagine what the savings would be if we started 
having a system where we recognized that, you know, companies 
that could avoid silver all together, for example, would be 
rewarded in the marketplace. And I am not sure what the 
specifics of that would be, but that, I think, is the general 
concept there, is to reward the most materials innovative 
companies that are making new products.
    Mr. Doyle. Thank you. You know, weatherization can have a 
large impact for individual families, both in the short and 
long term, and in the city of Pittsburgh that I represent we 
have a lot of older homes, and the utility bills for families 
can end up taking a large percentage of their income through no 
fault of their own, but because they have a leaky house.
    So, Mr. DeLaski, can you expand on the importance of the 
Weatherization Readiness Fund?
    Mr. DeLaski. Absolutely. Based on data from programs around 
the country, local programs like the program in Pittsburgh and 
others, and cities and rural areas around the country, about 
one in five households, the weatherization professionals go 
into the home, and they can't do their work because the home is 
in such disrepair that if they were to do insulation or 
ceiling, it could be damaged right away. Say you have a hole in 
the roof, say there is rotting floorboards. So one in five 
homes has--are in that State of disrepair, where you can't 
provide this service. And, of course, these are the homes 
occupied by the lowest income residents of these areas.
    Just to tell, you know, one story that we came up with--
this is from Aberdeen, Washington--this is a home where a 
partially disabled man, an elderly--a senior citizen, was 
deferred from weatherization because of extensive rot in the 
floor. And the State program helped him repair these issues in 
his floor, and then the contractor, the weatherization 
contractor, could then come in and do the weatherization job. 
And as a result, his annual heating bill was reduced to $700 a 
year. This is a home built in 1912.
    This happens time and time again for the program, so it is 
really critical that programs be able to do the basic repairs 
so they--you can go ahead and insulate. You can go ahead and do 
the weatherization that still has to be cost-effective. It 
still has to be cost effective to deliver those services. So it 
is really important to be able to do the repairs.
    Mr. Doyle. Thank you.
    Mr. Chairman, I yield back.
    Mr. McNerney. The gentleman yields. The Chair now 
recognizes the gentleman from Ohio, Mr. Latta, for 5 minutes 
for questions.
    Mr. Latta. Well, I thank my friend and the chairman for 
yielding, and I also thank our witnesses for being with us 
today.
    Mr. Pugliaresi, if I could start questions with you--and I 
have got so many questions and so little time. You know, the 
first chart--or one of the charts you showed us--figure two, 
which was world production depends on fossil-based fertilizers. 
And this is kind of an interesting chart, because my mom was 
raised on a farm, my wife was raised on a family farm. And back 
in 1965 on this chart is showing about--just a little over one 
billion people being able to be fed, and where we are today. I 
look at that as interesting, because in 1965 my grandfather was 
65, and he was--and so it is interesting to see where we have 
gone in that short period of time.
    And, you know, my concern is, when you look at these 
numbers that you showed us, that three billion people, you 
know, are dependent on--we are--you know, where we are, that if 
we don't have that fertilizer, depending on the eight billion 
with the mixed diets, you know, what is going to happen if we 
don't have these fertilizers out there in the future?
    Because, again, this is absolutely critical for survival of 
the population.
    Mr. Pugliaresi. Yes, we are just going to--we are going to 
have starvation and spiked prices. So I just don't think it is 
going to happen. I don't think the--you know, the--particularly 
the developing world, they are not going to move to a system in 
which they don't use ammonia or, you know, fossil fuels to make 
fertilizer.
    Now, the question is maybe you could do some of this with 
carbon capture and things like this, but the rising cost of 
this is likely going to see resistance. These countries will--
you know, I don't think the political leadership is going to 
permit them to not grow food.
    Mr. Latta. Well, and again, because--you know, what we are 
seeing with Ukraine this year with--they are not bringing out 
the maybe 60, 65 percent of their crop, and then they got to 
get it out to market.
    But then, in another--your figure three shows the rising 
prices because, again, that is going to affect everybody, not 
only in this country, but around the world what the price is 
going to be, because a lot of people are saying, well, prices 
are up for farmers this year, but the problem is going to be 
the cost of production is so much higher than it was last year.
    Mr. Pugliaresi. Right, right, right.
    Mr. Latta. So, you know, it is--I think it is critical.
    You know, again, another figure that you have was on--you 
know, and it was brought up just a little bit by Mr. Doyle. But 
when you are looking at, you know, rare earth minerals--this is 
your figure four.
    Mr. Pugliaresi. Yes.
    Mr. Latta. And, you know, when we need these minerals, and 
when you are thinking about especially where communist China is 
in supplying rare earth minerals across the globe today, you 
know, we are--but, you know, we talk about being able to 
recycle batteries and things like that, but we have got to have 
these things today.
    So where do you see, in the near term--because, again, it 
is--you know, we had testimony here. It might take ten years to 
get a mine open in this country.
    Mr. Pugliaresi. At least.
    Mr. Latta. To be able to get these, if we could get the 
mine open.
    Mr. Pugliaresi. Yes, right.
    Mr. Latta. So what is your projection, when you look at 
these numbers across your figures here, what is going to happen 
in the near term?
    Mr. Pugliaresi. So I think the risk--one of the risks that 
we have to understand that we face is that, if we try to 
transition too quickly to these alternative technologies, we 
are going to substitute an energy security situation in which 
we are actually relatively secure if we take the right 
measures, to a set of circumstances in which we will be 
relatively insecure. Because some of these folks making these 
critical materials, unless we have supplies here at home, are 
not friendly to the United States.
    Mr. Latta. Well, thank you.
    Mr. Lieberman, you know, I introduced legislation a while 
back that--you know, the discrepancies between energy standards 
based on when a furnace, central air conditioner and heat pump 
is installed versus when these appliances are manufactured. Can 
you talk about the problem of stranded inventory, and how 
regulations can better be tailored to avoid this problem?
    Mr. Lieberman. Yes. Some of the standards have the 
regulatory deadline as the point at which the product must be 
installed, rather than a drop dead deadline, after which you 
can't manufacture a certain product. And when the installation 
date is the deadline, that means some legally manufactured air 
conditioners or other equipment can no longer be installed. And 
that means that, if it is at a warehouse, if it is at a 
retailer, it is no longer legal, and so you have stranded 
inventory.
    So I do like the idea of moving away from using the 
installation date as the deadline. Again, many of these 
wholesalers, retailers are small businesses. They are 
struggling with supply chain issues, as well. We want to make 
sure they are not stuck with inventory that they cannot sell.
    I would point out that we need to be more broad about this 
because DoE regulations are just part of the story. There is 
EPA regulations, as well, that can create the risk of stranded 
inventory. So I am familiar with your bill, we just--we need to 
make sure that it is comprehensive.
    I would make one point that one of the reasons for using 
the installation date is to prevent a run on the older models 
before the new models take over, which is sort of an indication 
that consumers wanted the older models. And that is worth 
keeping in mind. We want DoE standards that don't deprive 
consumers of what they want.
    Mr. Latta. Well, thank you very much.
    And Mr. Chairman, my time has expired, and I yield back.
    Mr. McNerney. The gentleman yields. The Chair now 
recognizes the gentleman from New York, Mr. Tonko, for 5 
minutes to ask questions.
    Mr. Tonko. Thank you, Mr. Chair. I thank you for holding 
this hearing and including H.R. 7947, the Weatherization 
Enhancement and Readiness Act. I also thank you for your 
commitment to protect and strengthen DoE's Weatherization 
Assistance Program.
    This program is essential to supporting low-income 
households, especially during a time of increased energy 
prices. But we know even before these recent energy increases, 
many Americans were struggling to pay their bills, and low-
income families have a disproportionate energy burden, a higher 
percentage of their income being used to pay their energy 
bills. As many as one in five Americans reported reducing or 
foregoing necessities such as food or medicine to pay an energy 
bill. That is unacceptable.
    So the Weatherization Assistance Program plays a critical 
role in helping these families, and it works. Homes receiving 
assistance save an average of $372 every year. But despite this 
great work, we know the program can be improved.
    I want to focus on two important provisions of H.R. 7947.
    First, the bill would raise the average cost per dwelling 
unit from $8,000 for Fiscal Year 2022 to $12,000. This is the 
limit on how much assistance a home can receive. The ACPU has 
not been adjusted at a rate to keep up with recent increases in 
the cost of building materials, restricting the services 
households receive, and putting pressure on WAP crews' wages, 
which are included in the ACPU calculation.
    So Mr. DeLaski, can you help us understand why at this 
moment an increase in the average cost per unit is indeed 
appropriate for this program?
    Mr. DeLaski. It is urgently needed for this program. With 
the increase in wages that we are seeing across the economy, 
this is affecting the programs and their ability to be able to 
retain--to hire and to retain workers to deliver weatherization 
services. These are skilled people who can move on to other 
jobs if there is not--they are being paid adequately to do 
weatherization services. So the rise in wages is one factor.
    Another is the cost of materials. I think this committee is 
familiar with--that the cost of materials are going up, and the 
construction industry--of lumber. These costs and other inputs, 
these costs are going up. And the program hasn't kept pace with 
those--with the changes in costs to deliver these services.
    In addition, I would add that the homes that are in the 
worst--have the greatest needs, programs aren't able to provide 
necessary services with the caps that exist today. So this 
doesn't--increasing the cap is absolutely essential to being 
able to provide services to homes.
    I would also add that rural homes can be expensive to 
serve, as well, because the technicians, the service providers, 
have to travel further to provide those services. So for, you 
know, substandard housing in the rural parts of the country, 
rural districts, it is super important to increase this cap.
    Mr. Tonko. I thank you, sir. And second, many Americans 
who--would benefit from the program, but most are unable to 
receive assistance due to their homes, as you indicated, being 
in such poor conditions. These homes are passed over by the 
program. In some areas, this might be as many as 20 percent of 
eligible homes. So, Mr. DeLaski, do you believe it undermines 
the goals of the Weatherization Assistance Program that 
families are living in the worst conditions have the greatest 
difficulties accessing the assistance?
    Mr. DeLaski. Yes, it is ironic, and it is--it undercuts the 
very purpose of the program, that people who most need the 
services can access it.
    The program provides tremendous benefits to the homes that 
are able to be--to those families. But for the one in five, who 
they--they come into the home, they want to provide the 
service, they assess that there is the need, but then, because 
of problems like a hole in the roof, or because of rot, or 
because of mold, they can't do the insulation, they can't do 
the ceiling. And these are the people who most need those 
services, because they live in the most substandard housing. 
And those are homes in urban
    [inaudible], that are homes in rural areas. There are homes 
throughout the country, and these are the families who we most 
need to be able to serve with the Weatherization Program. And 
the way the program is structured today, these houses are 
deferred. In other words, they are not served. And that is a 
huge problem.
    Mr. Tonko. While the dedicated readiness funding, which may 
support structural improvements like bad roofs, and addressing 
environmental hazards like mold, and help lead to better 
outcomes, certainly for the traditional weatherization 
program--and provide hope for those households that have been 
passed by. So I appreciate your comments.
    And with that, Mr. Chair, I yield back.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentleman from West Virginia, Mr. McKinley, for 
5 minutes to ask questions.
    Mr. McKinley. Thank you, Mr. Chairman. Well, here we go 
again. After spending a year and a half on partisan messaging 
bills like the Clean Future Act and Build Back Better, Pelosi 
seems to be trying to avoid losses in this fall's general 
election by trying to appear bipartisan.
    Look, as Chairman Upton said a minute ago, inflation is at 
a 40-year high. Gas prices are over $6 a gallon. The opioid 
crisis continues to grow exponentially, and frustrated 
Americans are increasingly turning to violence. So instead of 
actually working on those matters, this majority is nibbling 
around the edges.
    And last night the President announced his support for a 
three-month moratorium on the Federal gas tax. Really? There 
is--this is nothing but a politically motivated gesture. Does 
anyone really expect the trucking companies to pass on those 
savings to the consumers? And with this suspension, a typical 
motorist will probably only save 7 to $10, 7 to $15 a month. 
That is about the price of a pack of cigarettes, or a couple of 
gallons of milk.
    But let's return to today's hearing, because that is what 
they want to talk about.
    These bills are well intended. I understand that. But, Mr. 
Chairman, these bills will not increase our domestic 
infrastructure, energy infrastructure, and its production, and 
lowering prices. This committee should be talking about issues 
that matter to Americans now.
    So, Mr. Pugliaresi, if I could ask you a couple of 
questions, if you were his adviser, would you tell the 
President or would you be advising the President to suspend the 
gas tax for three months?
    Mr. Pugliaresi. No. I think, as President Obama said, it is 
a gimmick.
    [Laughter.]
    Mr. McKinley. Thank you. And according to Reuters, 
countries around the world are increasingly using--reverting 
back to use of coal, as you mentioned in your remarks, for 
power generation because it is cost effective and avoids rising 
gas prices, natural gas prices. So if other nations are doing 
this, continuing to use coal--and let's call it clean coal--
would energy reliability in the United States benefit by our 
using clean coal technology?
    Mr. Pugliaresi. Absolutely. We should have a very robust 
and diversified energy source for generating power and other 
uses for energy throughout the national economy.
    Mr. McKinley. Thank you.
    And Mr. Lieberman, if you could just do--if you could just 
pass the magic wand that did one thing to lower gas prices at 
the pump, what would that be?
    Mr. Lieberman. I would try to travel back in time, and try 
to get candidate Joe Biden to not say he wants to kill off the 
domestic oil industry. I mean, talk about a chilling effect. 
And we have seen that ever since.
    One can complain that the oil industry, the refiners aren't 
investing enough. But can you really blame them, when the 
commander in chief is using that kind of extinction rhetoric, 
or at least was until prices got too high?
    Plus, as we know, the President has made good on those 
promises, starting from day one.
    One point I would also make is that, sure, Keystone XL 
pipeline, drilling in ANWR these would take time to come 
online. But a number of economists believe that expectations of 
future supplies has a beneficial effect on current prices. And 
then the alternative expectations of future supplies being 
cracked down upon because of Federal policy has an adverse 
effect on current prices.
    So I think there is a lot we could have done that would 
have lowered gas prices much more than the 18.4 cents per 
gallon Federal tax.
    Mr. McKinley. Thank you.
    Back to you, Mr. Pugliaresi. What would you do if you could 
just pass one thing? What would be the top priority to lower 
gasoline prices?
    Mr. Pugliaresi. Well, in the near term I would take the 
renewable fuel standard down to ten percent. I could get $0.30 
right there. I would ask the Administration to take emergency 
procedures to give us a national RVP standard for gasoline. I 
would probably also repeal the Jones Act, at least temporarily, 
so crude oil and products can move at low cost to--from where 
they are produced to where they are needed within the United 
States.
    These are all very difficult things to do. I fully 
understand that.
    Mr. McKinley. Thank you.
    Mr. Chairman, I yield back the balance of my time.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentlewoman from Washington State, Ms. Schrier, 
for her questions.
    Ms. Schrier. Thank you, Mr. Chairman. Mr.--and thank you to 
our witnesses.
    Mr. Frias, under the current statute, the Tribal Energy 
Loan Guarantee Program permits the Department of Energy to 
guarantee up to 90 percent of a private sector loan. And I 
wanted to dive into that a little bit.
    The first question is just has the private sector been 
willing to finance tribal energy projects?
    Mr. Frias. Thank you. You know, in Indian country we 
experience difficulty accessing capital across the board. It 
is--as I mentioned in my comments, you know, the joint NPR 
about the Community Reinvestment Act addresses some of the 
difficulties we have in bringing institutions--bringing capital 
into Indian country. I believe one of the members talked about 
how capital-intensive energy programs are. And so it is 
difficult for us to get capital in Indian country. Increasing 
it is a constant struggle.
    And, you know, studies have shown that institutions are 
reluctant to lend for economic development programs where they 
don't have a pre-existing relationship. The tribes that will 
have those pre-existing relationships are tribes that perhaps 
have built gaming institutions or other forms of economic 
development. But the reality is the tribes that are most in 
need of economic development are those that don't have it now, 
and perhaps are not well situated to be involved in the gaming 
industry.
    Ms. Schrier. And do you have any sense of what sorts of 
energy projects tribes of--various tribes were looking to 
finance? Just for some examples.
    Mr. Frias. You know, again, as I said in my testimony, we 
are agnostic about the technology at NAFOA, and I think you 
will find tribes that are on all sides. You will find tribes 
that are very interested in renewable energy. You will find 
tribes that are very interested in doing extraction. And that 
is one of the strengths, I think, of this program, is that it 
is technology agnostic. It doesn't favor one over the other, 
but allows tribes to have that authority in their own sovereign 
hands, tribal leaders to be able to make the decision for what 
works best for their community.
    And so we hear interest in a broad array of different 
projects. I think, but for the pandemic and the effect that it 
had, you know, not just in Indian country, but in the country 
as a whole, we would have seen further progress.
    Ms. Schrier. And are these energy production, or can this 
also be energy distribution projects? Because the ones you are 
talking about sound like they are really highly capital-
intensive, if they are energy production.
    Mr. Frias. You know, I believe it is in favor of energy 
production.
    Ms. Schrier. OK.
    Mr. Frias. But I will have to go back and take another look 
and make sure. If I can get back to you with a----
    Ms. Schrier. That is OK.
    Mr. Frias [continuing]. With a firm answer on that.
    Ms. Schrier. Thank you. No, I am trying to work through, 
you know, why this loan program is--has really failed Indian 
country to date. And it sounds like that is the reason that 
having this new system, where we don't have just a loan 
guarantee, but direct loans from the Department of Energy will 
make such a difference for Indian country.
    And then can--I think that may be the end of my question. I 
just--I mostly wanted to kind of get you to point out what the 
failing was with the prior system, and how this could make 
things better. And I think you have explained that this will 
allow for money to flow to tribes more easily.
    Is there anything else that you wanted to add to that?
    Mr. Frias. Yes. If I could reemphasize, Congresswoman, you 
know, funds weren't appropriated for this program until 2017. 
So while on paper it appears that the program has been around 
for a long time, it was around without funds. And so the first 
solicitation didn't go out until 2018. And then 2020, the 
pandemic hits, and we have this reallocation of funds in Indian 
country.
    We are all looking at different things. Indian country was 
hit, I think, in some ways harder than other parts of America, 
due to multi-generational families and--multi-generational 
homes, I mean, and other factors. And so, but for the impact of 
the pandemic, I think we would have seen further progress.
    I think this change is really important, because it takes 
out a really complicated extra step that we don't necessarily 
need.
    Ms. Schrier. Thank you, and I yield back.
    Mr. McNerney. The gentlewoman yields back. The Chair now 
recognizes the gentleman from Virginia, Mr. Griffith, for 5 
minutes to ask questions.
    Mr. Griffith. Thank you very much, Mr. Chairman.
    Mr. Lieberman, Mr. Pugliaresi, thank you for your responses 
to my colleague, Mr. McKinley, in regard to what we could 
actually do to lower the price of gasoline for consumers.
    And I would have to agree that a number of those would 
work, particularly the expectations, as you said, Mr. 
Lieberman. When you have the President of the United States, 
first as a candidate and then on day one saying we are not 
going to have any more drilling, we are not going to do the 
Keystone XL pipeline, how can you then expect those folks who 
normally would do the exploration, the drilling, the investment 
in new equipment, new refineries?
    As I understand it--and tell me if you have heard this, as 
well--our refineries are actually operating at about 93 and 94 
percent, which is about as good as you can get. Is that your 
understanding, too, Mr. Lieberman?
    Mr. Lieberman. Yes, it is. And one of the things refineries 
are struggling with is CAFE greenhouse gas standards for 
vehicles that will essentially require electric vehicles. So 
there is regulations that would constrain the amount of 
gasoline that can be used in the future effectively, and that 
raises questions about whether investing now in more capacity 
would be worth it.
    Mr. Griffith. Yes. And somebody used the term 
``delusional'` earlier, and I would concur with that, as well.
    All right, that--let me switch gears, and let me go to 
something different. Let's talk about the weatherization.
    Now, Mr. Lieberman, I like weatherization a little bit 
better than you do, based on your earlier comments. But I am 
concerned about this repair or reconstruction of a home before 
you get there. And I know that the bill has on page four a 
limit average for average cost per unit basis. But in some 
parts of the country--and that may include parts of my 
district--if the home is in disrepair, you might hit that 
average cost, based on prices in more expensive areas of the 
country. The average cost might actually mean that you invest 
more money in the home than the home is actually worth, even 
after repairs.
    Can you comment on that? Should we have something in there, 
if we are going to do it--and I know you don't like the program 
that much, but if we are going to do it, shouldn't we have 
something in there that says that it should be a percentage of 
what you expect the home would be worth after you have done all 
this work on it?
    Mr. Lieberman. Yes, I think that would be a good safeguard 
to improve the bill.
    I will say generally about the weatherization program--and 
this is just anecdotal evidence--there is a fair amount of 
waste that goes on. I think something less than 100 cents on 
the dollar has been spent wisely. A lot has been spent on the 
program. One would think that that much more wouldn't be need 
needed to be spent if the previous amounts were allocated more 
wisely.
    I don't know the specifics of your particular question.
    Mr. Griffith. Right.
    Mr. Lieberman. But again, I think, with the tremendous 
amount of funds that weatherization is already getting, I think 
there ought to be increased oversight.
    Mr. Griffith. Right. I agree with that.
    H.R. 5292 on the agenda today is a common-sense bill. I 
support that. It deals with making sure that, if somebody has 
gotten a DoE loan in the past, that they--and they have 
defaulted, they can't get another one.
    Do you think we should also say that for not only--Mr. 
Lieberman, not only for DoE loans, but for loans of any type 
from the Federal Government, that if somebody has defaulted in 
the past they shouldn't be eligible for a new DoE loan? Yes or 
no?
    Mr. Lieberman. Yes.
    Mr. Griffith. OK. And then I want to move on to something 
that I think is significant, and that is I think we probably 
also ought to have civil penalties for Federal employees who 
knowingly and willfully violate the law, because that is what I 
believe happened in the Solyndra situation. Everybody heard 
about the $527 million that was spent in Solyndra. That isn't 
what got my goat. My goat was the 95 million that was given to 
Solyndra subsequent to their default on December 1st of 2010.
    And when the code specifically says--I am reading right now 
from the code--``the obligation'`--that would be the DoE loan--
``shall be subject to the condition that the obligation is not 
subordinate to other financing.'` And in that case, I believe 
that some parties at DoE decided to subrogate the law, and 
disregard it because the law clearly said after default there 
weren't supposed to be any more moneys.
    They then came up with this plan to subordinate 75 million, 
which cost the government, or cost the people 95 million to 
outsiders. They did so with a series of emails back and forth. 
And one of the requirements on default was that you talk to the 
Treasury and the Department of Justice. When this scheme came 
forward and they mentioned it to Treasury, Treasury actually 
sent an email back at the time that said, ``Hey, we don't think 
you could do this. Maybe you should check with the Department 
of Justice.'` But they never checked with the Department of 
Justice. I suspect that is because they didn't want to find out 
they weren't allowed to do it, and have somebody from Justice 
saying that.
    Don't you think a civil penalty added in there if somebody 
willfully and knowingly violates the Federal law passed by 
Congress, don't you think that would help improve the DoE 
program, as well?
    Mr. Lieberman. That would make for a better program than 
without it.
    Mr. Griffith. Thank you, Mr. Chairman. I yield back.
    Thank you, Mr. Lieberman and others.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentlewoman from California, Ms. Matsui, for 5 
minutes to ask questions.
    Ms. Matsui. Thank you very much, Mr. Chairman. I want to 
thank the witnesses for appearing today.
    The Weatherization Enhancement and Readiness Act would also 
make crucial improvements to the Weatherization Assistance 
Program, helping more families lower their energy costs, while 
making their homes more energy efficient.
    In addition to the benefits that consumers will see on 
their bills, weatherization and energy efficiency play an 
important part in our fight and our efforts to fight climate 
change.
    Mr. DeLaski, can you please elaborate on the climate 
benefits of the Weatherization Enhancement and Readiness Act?
    Mr. DeLaski?
    Mr. DeLaski. Thank you for that question. Absolutely. You 
know, saving energy in homes, whether it be through the 
weatherization program or other programs such as the Appliance 
Standards Program and others, are effective policies for 
reducing energy use, and that helps to lower consumers' utility 
bills. And where power is being generated by--from fossil 
generation sources, that helps to reduce climate change 
emissions.
    Ms. Matsui. OK.
    Mr. DeLaski. The----
    Ms. Matsui. Can you please talk about how the 
Weatherization Readiness Program proposed in the Weatherization 
Enhancement and Readiness Act complements the Weatherization 
Assistance Program? What gaps does this bill address?
    Mr. DeLaski. Right. It addresses four important gaps.
    One gap is that it raises the average cost per unit to 
$12,000, so that you could actually do the projects that 
otherwise would be outside the scope of that cap.
    The second thing it does is that it allows the program 
administrators, the weatherization--the local Weatherization 
Assistance Programs to do basic repairs to homes that allow the 
weatherization work to be done. Absent those basic repairs, 
often the weatherization can't even be done.
    Ms. Matsui. OK.
    Mr. DeLaski. Those are two of the ways that it improves it.
    Ms. Matsui. Sure. One of the bills before us today takes 
important steps to modernize standards that govern water 
heaters, which are one of the most--one of the largest energy 
uses in our homes and businesses. By making simple updates, we 
can encourage more efficient and responsive technology, saving 
consumers money and reducing our energy consumption. But we 
know other outdated or inefficient consumer technology 
throughout our homes is not keeping pace.
    Mr. DeLaski, can you talk about the relationship between 
household appliances and consumer technology and our energy 
consumption?
    Moving forward, what options do we have to ensure our 
standards are keeping up with technological advancements?
    Mr. DeLaski. One of the most important ways to make sure 
that our--is for us to update the appliance standards 
administered by the Department of Energy. The Department has a 
legal obligation to review standards periodically to keep pace 
with technological change.
    And it is--the typical new refrigerator sold today uses 25 
percent as much as it did 20 years ago. It is huge 
technological progress, and that progress is driven in large 
measure by increasing standards.
    Ms. Matsui. Sure.
    Mr. DeLaski. That ensures all consumers, whether they buy 
an entry-level unit or whether they are buying a deluxe unit, 
get a level of performance that lowers their energy bill, and 
lowers the emissions that result from using that appliance.
    Ms. Matsui. OK, thank you.
    I have long believed that the investments we make in 
critical infrastructure not only supports our economy, but 
enhances our national security. This is especially true for the 
infrastructure within this committee's jurisdiction. Dr. 
Mulvaney, can you discuss the relationship between local 
electricity infrastructures and national defense?
    And how can we balance the need for needed upgrades with a 
cost burden on ratepayers?
    [Pause.]
    Ms. Matsui. Dr. Mulvaney?
    Dr. Mulvaney. Would you mind repeating that one more time? 
I am sorry.
    Ms. Matsui. Oh. Can you discuss the relationship between 
local electricity infrastructures and national defense?
    And how can we balance the need for needed upgrades with 
the cost burden on ratepayers?
    Dr. Mulvaney. Yes. So a lot of our military infrastructures 
and installations are, obviously, around--in rural communities, 
and these are often--sometimes they could be co-ops, and not 
even major parts of our major utilities in the State, and they 
can often be burdened with very high bills.
    And it sounds like, from the context for the bill, that 
these infrastructure upgrades are needed for national security, 
to make sure that, you know, these critical infrastructures are 
up to speed, in terms of the most secure facilities, and that 
they have the latest gear in there, and all that stuff. But 
that is expensive. And when a co-op or a--even a utility has to 
build those infrastructures, the ratepayers have to pay for 
that.
    Ms. Matsui. Right.
    Dr. Mulvaney. So in terms of--so there is a couple of ways 
to protect low-income customers. One is you have outside 
investment help that, and that could be supported by the 
government. But you could also have programs to protect low-
income ratepayers. Like, California has a law--has the 
California----
    Ms. Matsui. Thank you very much.
    Dr. Mulvaney. --[inaudible] program that allows them to----
    Ms. Matsui. Dr. Mulvaney, I have run out of time.
    Ms. Snyder. Sorry.
    Ms. Matsui. Thank you, I yield back.
    Ms. Castor [presiding]. The gentlewoman yields back.
    Next up, Mr. Johnson, you are recognized for 5 minutes.
    Mr. Johnson. Well, thank you, Madam Chairwoman. Well, here 
we are, right in the middle of this preventable, in my opinion, 
intentional energy crisis.
    Five-dollar-a-gallon gasoline in rural Appalachian Ohio for 
my constituents means having to choose between food, medicine, 
getting to your job, taking the kids to school, or driving to 
take an elderly loved one for some hospital care. And what does 
President Biden and his Administration have to say? Well, they 
say just go out and buy an electric car, and join us in this--
and I quote--incredible transition to green energy.
    I mean, our Treasury Secretary actually agrees. She 
recently said--and I quote--``The critical thing is that we 
become more dependent on the wind and the sun that are not 
subject to geopolitical influences.'` How ridiculous. Excuse 
me, Madam Secretary.
    Mr. Pugliaresi, I can't believe we need to clarify this, 
but can you please explain how critical minerals and metals for 
solar panels and batteries and the rare earths to make 
specialized magnets for wind power generation and electric 
motors are very much subject to geopolitical influences, not to 
mention subject to the whims of our geopolitical adversaries?
    Mr. Pugliaresi. Well, until we develop domestic or more 
secure supplies from reliable trading partners, we are going to 
find that some of these--many of these critical materials and 
minerals are sourced out of China, the Congo in Africa, and 
very, very unreliable sources, which would be in a position to 
not only generate a great deal of revenue from the sale of 
these products to the United States, but also to withhold them 
or to extract wealth from us by charging prices well above 
market levels.
    Mr. Johnson. So basically, we are going to be making 
ourselves more dependent on some of the worst people in the 
world.
    Mr. Pugliaresi. I believe, without the proper measures, we 
could end up taking a position of relative energy security to 
one of energy insecurity.
    Mr. Johnson. Well, let me pivot for a moment to this water 
heater legislation regarding so-called demand response 
technology, which I think is better described as the capability 
to remotely control the American people technology.
    I don't know about you all, but my constituents would be 
extremely concerned if an outside entity--say the power 
company, or the EPA, or the Department of Energy--at the push 
of a button tells them, ``Sorry, you have got to take cold 
showers today because the grid is overloaded.'`
    Friends, the solution here is to make policies and 
implement policies that make electricity generation more 
affordable, more reliable, and more abundant, not look at ways 
to micro manage household energy use.
    So, Mr. Lieberman, you mentioned it briefly in your 
testimony. Can you describe to us the concept of--I quote--
``forced demand response'`?
    And can you explain why, without effective guardrails--I 
mean, could you see this expanding beyond water heaters to 
other home appliances, and perhaps even electric vehicles?
    Mr. Lieberman. Well, yes. There are some very legitimate 
concerns about privacy here.
    What this program would do--essentially, it strikes me as 
trying to make up for the intermittency of wind power by 
allowing extra wind to be used to heat your water when it is 
available, or extra solar. And that would require turning on 
the water heater at that time. What strikes me is it is really 
getting away from the consumer focus of the Energy Policy and 
Conservation Act, which is supposed to save consumers money, 
and do so in a way that doesn't compromise any product 
performance features, reliability, choice.
    The more I learn about this program, the more--maybe 
cockamamie is too strong a word, but at least convoluted. I 
just don't believe that it could ever happen in a way that 
wouldn't be a lot of problems for consumers. And in any event, 
if any homeowner wants to go along with this, more power to 
them. But we need to prevent this from being mandated.
    And, you know, in response to maybe the argument, well, 
this doesn't mandate it, it gives DoE the option of mandating 
it, well, you know, maybe I would be impressed with that if 
this was my first week in Washington. But we know that 
regulatory agencies always take every opportunity to expand 
their power. And so this will mandate the demand response 
capability.
    Mr. Johnson. Yes. Well, I thank you for your comments.
    Madam Chair, I yield back. It is mind boggling to me that 
we are even talking about something like this.
    Mr. McNerney [presiding]. The gentleman yields back?
    Mr. Johnson. I yield back.
    Mr. McNerney. Thanks for the gender promotion.
    Mr. Johnson. Sorry, I thought my colleague from Florida was 
still----
    Mr. Upton. It is that new haircut.
    Mr. Johnson. I didn't even look over there.
    Mr. Upton. It was that new haircut. It was that new haircut 
of his.
    [Laughter.]
    Mr. Johnson. That is all right.
    Mr. McNerney. The Chair now recognize the gentlewoman from 
Florida, Ms. Castor, for 5 minutes to ask questions.
    Ms. Castor. Well, thank you, Mr. Chairman, and thank you to 
our witnesses for being here.
    This is a very timely hearing, because we know that our 
neighbors are really grappling right now with the higher cost 
of energy, driven by Putin's unprovoked war in Ukraine, the 
squeeze put on by oil and gas companies because of America's 
continued addiction to oil. So we have got to invest in our 
energy infrastructure to lower costs for families, and at the 
same time tackle the climate crisis and protect our communities 
from the costly impacts of climate change that we can no longer 
avoid.
    So we are making progress. Many of the bills we are 
discussing today will help advance clean energy and lower cost 
to energy efficiency, from equitable access for weatherization 
to expanding the use of distributed energy sources for demand 
response for a more flexible, innovative grid to ensuring the 
resilience of our military installations.
    I want to thank Representative Peters, especially, for the 
GRID Act that is focused on innovation at DoD. You know, think 
about how our national security is reliant on consistent 
energy, but to fulfill those critical defense and strategic 
missions we have got to ensure that energy supply to those 
bases is continuous and reliable. I have a base in Tampa, 
MacDill Air Force Base, and we are very concerned about, over 
time, the resilience of that base and energy supply.
    But let's talk about a flexible grid with more renewable 
energy, because more efficient electric space and water heaters 
will save Americans money on their electric bills. We have the 
technology to do this. I--some of these arguments are, like, 
from 20 years ago, we can't do this in America. We can do this. 
We have the innovative technologies to do it.
    So, Mr. DeLaski, help us understand how water heaters with 
demand response could help facilitate a more flexible electric 
grid. What is demand response? You have heard it criticized 
here today. And why are water heaters well suited for it?
    Mr. DeLaski. Thank you for the question. Water heaters are 
very well suited for providing demand response services 
because, in essence, they act as a battery. All of us--or most 
of us--have a water heater in our home that has got 40 or 50 
gallons of water in it. We aren't using that water on a 
continual basis. We can heat it up when power is cheap, and we 
can reduce our bills tremendously if we have that capability in 
our water heaters.
    One thing I want to point out is that it is much cheaper to 
add that capability at the point of manufacture than to 
retrofit it once that water heater has been installed. For a 
utility to send a truck out to someone's home to retrofit a 
water heater is hundreds of dollars. Doing it in a factory so 
that it comes equipped, so that customer has the choice--they 
don't have to join a demand response program, but we want them 
to have the choice.
    This bill gives the consumer the choice, if acted on by the 
Department, if the Department takes advantage of the authority, 
it would give consumers the choice to be able to participate in 
demand response programs, if offered by their utility.
    Ms. Castor. Mr. Greene, what do you think?
    Mr. Greene. Thank you, Congresswoman. To be very short and 
efficient and candid here from a manufacturer's standpoint, we 
have been involved in both pilots, as well as DR programs with 
water heating equipment for the better part of a decade. And 
while these programs are nascent, they are all voluntary.
    What we are really asking for, as manufacturers, as relates 
to technology innovation, is standards that we all can meet. 
And just having the water heater have the capability, and 
therefore giving a consumer that may want to enter into a DR 
program the ability to do so, for us it is all about business 
certainty and manufacturing to a national standard versus 
bespoke standards that may be coming into the future.
    Ms. Castor. So innovation, lower energy bills for 
consumers, this makes enormous sense. And I am a little 
confused to why our GOP colleagues are criticizing this today, 
because still on their website today they are highlighting our 
bipartisan work in 2015 to ensure energy saving, grid-enabled 
water heaters continue to be manufactured and sold, a solution 
to facilitate greater cooperation and save money. So we need to 
move these bipartisan efforts forward, and focus on real 
solutions to lowering consumers' energy bills. I know we can do 
it.
    And I will yield back my time, thanks.
    Mr. McNerney. The gentlelady from Florida yields. The 
gentleman from Indiana, Mr. Bucshon, is recognized for 5 
minutes for questions.
    Mr. Bucshon. Thank you, Mr. Chair. I am pleased we are 
coming together today to discuss concrete actions we can take 
to help bolster our energy infrastructure and deliver reliable, 
affordable, and clean energy to our constituents. However, I 
must emphasize my disappointment in the majority's 
unwillingness to discuss some of the most pressing issues 
facing my constituents and our constituents on the energy 
front.
    Last week gasoline prices climbed over $5 a gallon 
nationwide. In my home State of Indiana, Hoosiers are paying, 
on average, $5.11 per gallon for regular gasoline and over $6 
per gallon for diesel.
    My constituents are also facing the potential risk of 
rolling blackouts this summer due to insufficient grid resource 
capacity. And this isn't my opinion. This is according to MISO, 
the Midcontinent Independent System Operator, and also some 
utilities in the region.
    Our constituents are hurting from the Biden 
Administration's ideologically motivated energy agenda that 
puts the goals of the radical environmental groups above the 
needs of the American families. As has been said many times in 
this committee by my colleagues and I, this is a dangerous 
approach that will significantly hamper our ability to reliably 
and affordably meet our energy needs moving forward.
    Some countries around the world are already experiencing 
dramatic reckonings resulting from such an approach that is 
being proposed by the Administration, and are being forced to 
take drastic action, literally, as we speak. For example, 
Germany, the Netherlands, Italy, and Austria recently announced 
intentions to bring back some coal-fired power plant generation 
due to their inability to meet energy needs with intermittent 
renewables without Russian gas. Who would have thunk that the 
Russian gas would go away?
    You have to have capacity yourself. This may put them back 
at the starting gate when it comes to decreasing their carbon 
emissions and their climate goals over time. In fact, some 
politicians in Germany are now discussing openly, publicly the 
possibility of overturning the country's 2017 ban on hydraulic 
fracturing, or fracking, to increase the domestic supply of 
gas. Wow, what an idea. We should think about that in some of 
our states here, in America.
    Why would America, with our own vast resources, follow down 
the pathway we are witnessing in Europe? We are not trying to 
reinvent the wheel here.
    So Mr. Pugliaresi, when I questioned you before a joint 
hearing of the Environmental and Energy Subcommittees last 
fall, you said that we could affect prices if we ensure that 
our domestic oil and gas industry remains efficient and produce 
at capacity. So prices are continuing to rise. What are we 
missing out on here?
    Mr. Pugliaresi. I think part of the problem, of course, was 
that the lockdowns, in my view, were excessive. And they 
resulted in a lot of our supply chains being disrupted. So we 
had a real problem coming out of the lockdowns.
    But we also have a real problem on expectations, as Ben had 
spoken about previously.
    I would like to point out one thing. Recently, President 
Biden visited Japan. And the two----
    Mr. Bucshon. And I was just there, too, myself.
    Mr. Pugliaresi. Yes. Prime Minister Kishida and the 
President issued a lot of joint statements. But when it came 
time to make a joint statement on the importance of LNG exports 
and the importance of more investment in U.S. oil and gas, only 
Prime Minister Kishida was on that statement. President Biden 
refused to join him in calling for more investment in U.S. oil 
and gas.
    We need to kind of change the dialog. These investments in 
oil and gas production and infrastructure, they are long-term. 
They require regulatory certainty, and they require investment 
certainty. And we don't have that right now.
    Mr. Bucshon. Yes. I mean, on my recent trip to Japan with 
some other members, bipartisan, the prime minister told us--and 
his people told us the same thing--you know, when we were 
talking energy policy, they want to be partners, and they are 
completely dependent on imported energy, as you probably know. 
And they want to be partners with us on LNG and other sources 
of energy. They are desperate to work with us on these issues.
    Mr. Pugliaresi. Absolutely.
    Mr. Bucshon. So the rolling blackouts looming in Indiana 
and elsewhere across the country are there. I mean, it is also 
for you.
    How can we increase grid resource capacity to minimize the 
possibilities of power outages? How do we minimize that? I 
mean----
    Mr. Pugliaresi. We have not invested enough in the grid, 
and we have not invested enough in systems that can back up and 
provide reliability for intermittent power. And, you know, 
there are a lot of ways to address this.
    I have always--I--some time ago I spoke to Chairman 
Chatterjee, when he was chairman of FERC. And I said, ``Why 
don't we have everybody bid firm power? Let the solar folks, 
the wind folks come to the table with 24-hour power, and at 
least we would have some price discovery.'` We don't really 
know what the cost of intermittent power is, because it is not 
the same as baseload power. It is a different product.
    Mr. Bucshon. Understood. I yield back. Thank you very much.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentleman from Arizona, Mr. Schrader, for 5 
minutes for questions.
    Mr. Schrader. Well, Oregon is a good State, too.
    Mr. DeLaski, my question pertains to Congresswoman 
Dingell's bill to create a new demand response system for 
residential water heaters. Do you envision that the provisions 
regarding demand response capability for hot water heaters 
could rely on the internet, as opposed to in person only?
    Mr. DeLaski. So some programs that exist today in states 
such as Oregon and Washington and others do rely on being able 
to control, being able to--consumers can opt into programs 
where they can gather information, for example, for a water 
heater to respond to a price signal so that the water heater 
knows that, when prices are low, it is a good time to charge 
up. And then, when prices are high, it is a good time for that 
element not to be activated. So, yes, that information would 
travel over the internet, and the--to know what is happening 
with prices in real time.
    So yes, technology has advanced tremendously, and being 
able to use the ability of real-time knowledge to make the 
water heater decide when it is going to operate is a benefit 
that could be achieved through a smart, well-designed program 
created by a utility.
    Mr. Schrader. That could be a win-win, and save money for 
the consumer, as well as the utility and rates overall.
    Do you expect such demand response technology to be open 
standard or proprietary?
    Mr. DeLaski. So there are three states now, or a number of 
states that have set standards on manufacturing, and they are 
generally requiring an open standard. And that would be part of 
what would make sense, as the Department considers doing a 
national standard.
    One of the benefits that we see in having standards is that 
they--open standards that would allow any number of market 
participants to participate in that market to provide demand 
response services, so that it is not proprietary, and not 
controlled by anyone--so that we get competition in the market. 
That is the objective of an open standard.
    Mr. Schrader. Yes. Because otherwise, it could be extremely 
costly to the utilities, the ratepayers, and kind of confusion 
in the marketplace for the consumer that thinks they can hook 
up and have that demand response that you alluded to earlier.
    The Department of Energy is supposed to determine the 
economic viability and technological feasibility of these 
demand response technologies. Do you expect such technology to 
be put in place here in the short term, next year or so?
    Mr. DeLaski. Well, as I mentioned earlier, there are a 
number of states that have requirements today, including up and 
down the West Coast, and then a number of states have authority 
for that
    [inaudible] for standards to be required, as well. So that 
is already starting to shift the markets and creating a range 
of requirements on manufacturers that are coming in the
    [inaudible] at different times, different
    [inaudible].
    The technology is there today. I think the question is, do 
we try to normalize this and have a national approach? Or do we 
let it go State by state?
    Mr. Schrader. Very good, very good. Yes. No, it seems like 
the sooner we move to some uniformity in that area, the better 
off we will all be.
    With that I yield back, Mr. Chair.
    Mr. McNerney. Well, the gentleman from Oregon yields back. 
The Chair now recognizes the gentleman from Michigan, Mr. 
Walberg, for 5 minutes.
    Mr. Walberg. Thank you, Mr. Chairman, and thanks to the 
panel for being here. While I am glad we are discussing some of 
the bills today, I know our time could be better served by 
addressing the energy crisis happening across the country.
    Today it has been reported to me the average price of 
gasoline in Michigan is $5.13 a gallon. In Washtenaw County, in 
my district, where University of Michigan is, the situation is 
even worse, with prices hitting nearly $5.23 a gallon, which is 
$0.30 higher than the national average.
    My constituents are struggling. And as members of the 
Energy Committee in the House, we need to be doing more to 
address this issue because it is, as some of my colleagues have 
said already, is impacting people's lives, literally, with 
choices that they shouldn't have to make that are really life-
changing choices.
    There are some good bills before us today, as I said, but 
the scope of the challenge calls for much more. It is 
unfortunate that the Republican legislation that would help 
alleviate high prices at the pump, like the American Energy 
Independence from Russia Act, the Strategic Production Response 
Act, and My PIPES Act are not up for discussion.
    That being the case, Mr. Pugliaresi, in your testimony you 
outline that there is a fundamental misunderstanding of the 
impact of government policies on energy markets. Can you talk 
about that misunderstanding, and how it has led to higher 
energy prices?
    And how can we transition back to a more realistic approach 
to energy policy?
    Mr. Pugliaresi. Right. I think one misunderstanding is the 
scope and the scale of the energy transition. It is much, much 
harder than most of our analysts and our--much of which the 
government believes. This is a worldwide problem. Even if the 
U.S. were to go to net zero, and all our OECDs were to go--all 
our member countries in the OECD were to go to net zero, in the 
absence of a transformation through Asia Pacific and the rest 
of the world, the reduction in greenhouse gas emissions in 2050 
would probably be about 20 percent less.
    So the real issue here is that economic growth and 
prosperity, human development is going to take a massive 
commitment of continued production of fossil fuels.
    And the United States is blessed with extensive resources 
of oil and gas. But we have made a lot of mistakes. We have not 
provided the infrastructure, the regulatory programs to allow 
the infrastructure to build these resources out and to make 
energy more affordable for the American people.
    Mr. Walberg. Yes, yes. And hearing comments that Americans 
are addicted to oil and fossil fuels--we are addicted to 
success. We are addicted to a good standard of living. We are 
addicted to future opportunities. And I don't think most of us 
mind doing away with fossil fuels if we have something better. 
What we want to have is our continued lifestyle in the United 
States, which benefits the world.
    Turning now to the legislation before us, last Congress I 
was a cosponsor of an earlier version of H.R. 7962, which aims 
to fix an Obama-era regulation and modify the definition of 
water heater under the energy conservation standards. This has 
been a long process, and I commend the stakeholders for 
continuing to work together to come to an agreement. I am also 
a cosponsor of the current iteration. However, there are still 
some questions that remain which may impact my continued 
cosponsorship.
    Mr. Greene, the current version of the legislation has some 
new language involving demand response, as we have talked 
about, for residential hot water heaters. Why was this 
provision necessary, and how does your company and the broader 
industry feel about its inclusion?
    Mr. Greene. Thank you, Mr. Walberg. The industry does 
support the language as a threshold matter, No. 1.
    No. 2, the language was inserted, based upon stakeholder 
input from the prior iteration of the bill, and working with 
one particular stakeholder, the National Rural Electric 
Cooperative Association, and deriving language that would help 
maintain the ability of consumer choice for electric storage 
water heaters.
    The DR language, the demand response language, is more 
about manufacturers coming together and having the Department 
have one national standard on the capabilities that the water 
heater would have to have. Not that there is mandatory 
enrollment in DR programs, but just so we, as manufacturers, 
have one standard to manufacture two, rather than bespoke 
standards around the country.
    Mr. Walberg. OK. Well, thank you. My time is expired, and I 
have other questions that I will submit for the record.
    [The information appears at the conclusion of the hearing.]
    Mr. Walberg. But thank you, and I yield back.
    Mr. McNerney. The gentleman yields back. The Chair now 
recognizes the gentleman from Alabama, Mr. Palmer, for 5 
minutes to ask questions.
    Mr. Palmer. Thank you, Mr. Chairman. I have got so much 
that I want to run by, I need 30 minutes. But I will do the 
best I can.
    I just want to point out some things. And for the record, I 
am tired of the Biden Administration trying to put blame on 
others for the energy price increases. I want to say for the 
record that price increases are not the result of the pandemic. 
They are not the result of Putin. They are not the result of 
profits. They are the result of policies. And until the 
Administration adopts policies that will change the situation, 
we are going to continue to see energy prices go up. And they 
are going to have a devastating impact on low-income households 
and households on fixed incomes.
    We see it played out day after day. We have seen it in 
Europe, with their mad dash to convert to renewables. We have 
seen it manifest itself in some ways that a lot of people don't 
think about.
    There is numerous reports out about excess winter deaths, 
excess winter deaths as a result of low-income individuals, 
people on fixed incomes not being able to afford the price of 
heating their homes adequately. This is not freezing to death. 
This is people with cardiovascular respiratory illnesses, and 
we are talking about 20,000 to 30,000 now being reported in 
England and Scotland and Wales and places like that, and all 
around Europe.
    So there are consequences for these actions. It is not just 
economic consequences. It is across the board. And I am really, 
frankly, tired of listening to this Administration try to blame 
the pandemic or Putin or energy company profits for a problem 
that they have themselves created.
    And Mr. Pugliaresi, I have really appreciated the graphs 
that you put up. I would like to see those graphs, but you laid 
out a visual for where we are, in terms of our energy policy.
    The other thing that I want to point out is--and I think 
both you and Mr. Lieberman have commented on this--is the 
importance of the natural gas reserves that we hold. We will 
never run out of natural gas. I mean, just a few years ago they 
were predicting that we were going to run out of everything. 
But we will never run out of natural gas. We will never run out 
of oil.
    And the thing that I want to point out in this, again, this 
push toward renewables, if you build a natural gas facility to 
generate electric power, it will have a generating life cycle 
of about 60 to 65 years. You build a next gen nuclear facility, 
which can use spent fuel rods that retain 90 percent of their 
energy, and that facility will operate for 100 years. I mean, 
you can only imagine the technological advances that will occur 
in that 60 to 100-year period. But you build--if you rely on 
solar or wind power, those facilities have a life cycle of 25 
to 30 years. And on the wind power, the turbines start losing 
generating capacity after ten years.
    And I want to add one other thing. To get the same power 
generation from a--that you can get from one next gen nuclear 
that can be sited on 640 acres, it would take 70,000 acres for 
a wind power facility.
    So people need to understand what is going on here. And we 
can come in here and we can ask questions. You start talking 
about the materials that we are going to need, and a lot of 
times we start talking about rare earth elements, but we are 
talking about iron, we are talking about copper, and others 
that are not rare earths. And you have got the Biden 
Administration wanting to utilize the Defense Production Act to 
increase the mining and production of these metals. But at the 
same time, the Administration is using regulations to block it.
    I mean, this is what we have got in this Administration, 
and the policies that we are getting from the Democrats who 
have the majorities in both Houses of Congress, policies that 
are going to drive our economy into the ditch, policies that 
are going to result in more excess winter deaths, policies that 
are going to increase the number of Americans living in poverty 
because inflation is off the rails and will continue to go up, 
and no policies, no sensible policies, no sane policies that 
will get us going in the right direction.
    Now, I know I am supposed to come in here and ask you some 
questions. I will send you some in writing.
    [The information appears at the conclusion of the hearing.]
    Mr. Palmer. But I just think that we need to have clarity 
in this discussion, and I am going to repeat it for the third 
time: this is not the pandemic, it is not Putin, it is not 
profits; it is the Biden Administration policies.
    With that, Mr. Chairman, I yield back.
    Mr. McNerney. The gentleman from Alabama yields back. The 
Chair now recognizes the gentleman from Arizona, Mr. 
O'Halleran, for his 5 minutes.
    Mr. O'Halleran. Thank you, Mr. Chairman, and Ranking 
Member, for holding his meeting today.
    In the Fiscal Year 2022 omnibus Congress authorized the DoE 
to provide direct loans through tribal energy loan guarantee 
programs. My bipartisan bill, the Tribal Energy Investment Act, 
would extend current law, ensuring tribes have access to 
capital to invest in energy products--projects vital to our 
communities which create good-paying jobs, and renewable energy 
to the grid, and encourage resiliency.
    Mr. Frias, can you describe what barriers tribes and tribal 
organizations face when financing energy projects?
    How does the Tribal Energy Loan Program play a role in 
lowering those barriers?
    Mr. Frias. Thank you, Mr. O'Halleran, for your question.
    You know, tribal communities face difficulty getting access 
to capital across the board in all forms of economic 
development. By removing--and these--let me step back for a 
second.
    You know, these projects are complex, and there is a number 
of components to it. By removing the need for finding a 
financial institution to fund this project, and allowing for 
direct loans, you simplify the process and make it easier for 
tribes to invest in energy development and create, as you have 
mentioned, jobs: high-paying, quality, long-term jobs in Indian 
country.
    Overall, there is difficulty getting financial institutions 
to work in Indian country. The difficulty was in access--
accessing capital in Indian country, something that we work on 
quite a bit at NAFOA, and it is why we have made so many 
comments on the original NPR for the Community Reinvestment 
Act, and why we are looking at the joint NPR, the Community 
Reinvestment Act, because getting capital into Indian country 
is harder than I believe it should be.
    Mr. O'Halleran. Thank you, Mr. Frias. In your testimony you 
note that the energy development can transform communities. We 
have certainly seen that go both ways.
    In Northern Arizona, in 2019, the closure of the Navajo 
Generating Station cost hundreds of Arizonans, mostly members 
of the Navajo and Hopi tribe, to lose their jobs. But other 
energy projects like hydrogen, hydropower, solar, wind, natural 
gas present opportunity--present opportunities for significant 
economic development.
    I look forward to working with my colleagues to ensure this 
fix is made permanent, and tribes have access to the resources 
they need to thrive in the 21st century energy economy, and 
also that we take into consideration, as these plants close, 
the families and the jobs that are going to go with them, to 
make sure these areas in rural America stay as part of the 
permanent structure of our landscape.
    In my remaining time I would like to focus on what America 
can do to secure our critical minerals supply chain. I was 
disappointed to read yesterday that mining companies taking a 
page from the playbook of big oil are prioritizing stock buy 
backs over investment in projects essential to securing 
America's clean energy supply chain. We need a diversified, 
critical minerals supply chain, but some seem to present a 
false choice, pitting our transition to renewable energy 
against American commitments to clean water, protecting our 
lands, and respecting tribal sovereignty.
    We don't need to compromise American values to build a 
strong, critical minerals supply chain. We need to understand 
the makeup of that supply chain in the world, and become 
dominant in those areas that are--where we are now weak. We 
need to identify clearly how we are going to strengthen those 
supply chains and, if possible, bring a lot of that back to 
America, where it belongs.
    I am committed to working across the aisle to find common-
sense solutions to ensure we aren't trading with--which 
authoritarian regimes plague us into an energy crisis, and 
instead invest in a future where America is truly energy 
independent
    [sic].
    Article after article after article has clearly 
identified--and studies--that we are not in the right place 
when it comes to the resources that we need to both address the 
challenges our society is facing, and to address the needs of a 
cleaner climate and less carbon future.
    And with that, Mr. Chairman, I yield.
    Mr. McNerney. The gentleman from Arizona yields. The 
gentlewoman from Arizona is now recognized for 5 minutes to ask 
questions.
    Mrs. Lesko. Thank you, Mr. Chair. It is Arizona time, I 
think.
    I want to make a statement first before I ask a couple of 
questions. I really think, on H.R. 7962, we need to remove the 
demand response system program. I understand that you want a 
national standard, but from a consumer point of view, I can 
tell you that my constituents are going to go epileptic if they 
think the utility companies are going to shut off their water 
heater in the middle of a shower. And so I think that that is a 
problematic part of it.
    I have a question for Mr. Pugliaresi. In Arizona we have a 
lot of mining. And so we have--we produce about 65 percent of 
America's entire copper production.
    There is also another mine in Superior, Arizona owned by 
Rio Tinto, where they have invested $2.3 billion. And under the 
Trump Administration, it was given the green light. But two 
months into the Biden Administration it was--pulled the plug. 
And it could produce about 25 percent of all the copper that is 
needed or consumed in the United States.
    We also have a--large lithium deposits in Arizona.
    So my question is, how do you think H.R. 1599, which is 
Representative Upton's bill, would help produce and encourage 
mining in the United States, which, of course, is needed if we 
are going to move to, you know, send--wind and solar and EVs?
    Mr. Pugliaresi. So I think the bill would permit DoE to 
identify the importance of these materials. It is not going to 
fix the Interior Department, right? I presume these mines are 
on public lands, and particularly in Arizona, and they are--
unfortunately, we are going to eventually have to reform NEPA.
    I am not sure why the Administration pulled the plug on 
those mines, or whether they were acting on a court case. But 
we are going to have to find a way to develop resources in this 
country that is--meets environmental standards, but can go 
through a regular approval process, rather than endless delays 
and fighting over a very uncertain set of standards. So in that 
sense, it is a much more serious reform problem we need to 
undertake.
    Mrs. Lesko. And I agree with you. We need to promote not 
only mining, U.S. mining production, but U.S. oil and gas 
production to solve some of our problems and be less reliant on 
China, quite frankly.
    My next question is for Mr. Lieberman. H.R. 7947, the 
Weatherization Enhancement and Readiness Act of 2022, creates a 
new weatherization readiness program to provide grants to State 
and tribal organizations for low-income residents. I have been 
a supporter of the Low-Income Home Energy Assistance Program, 
LIHEAP, which provides Federal funded assistance in managing 
costs associated with home energy bills.
    My question is, do you think this bill, this new program 
established by this bill, would be duplicative of LIHEAP?
    Mr. Lieberman. It could be. LIHEAP helps pay the energy 
bills after they have been incurred. Weatherization, if it 
works right, prevents the energy from being used in the first 
place.
    Again, I think the problem with the weatherization program, 
how much bang for the buck are we getting, how many cents on 
the dollar are being spent wisely, I think that we are doling 
out more money after more money after more money without taking 
a look at what past money has succeeded at and failed at.
    And in terms of the larger issues, I think if a low-income 
household had a choice between a completely unweatherized home 
and the energy bills of the recent past, or a heavily 
weatherized home but today's energy prices, I think most would 
go with the unweatherized home. It would probably be cheaper 
for them. So we really need to get those energy costs down 
through more production. That is job one.
    Mrs. Lesko. Great. Well, I thank all of you for being here, 
and those online and testifying. And let's work together and 
help America.
    And with that, I yield back.
    Mr. McNerney. The gentlelady yields back. I understand that 
there are members that wish to come back after recess for 
questions.
    So at this point we are going to be calling recess until 
immediately after votes.
    [Recess.]
    Mr. McNerney. I call the subcommittee back to order.
    The gentlewoman from Delaware, Ms. Blunt Rochester, is now 
recognized for 5 minutes for questions.
    Ms. Blunt Rochester. Thank you, Mr. Chairman, for calling 
this hearing, and thank you to all of the witnesses for your 
testimony today.
    Even though summer officially began yesterday, we are 
already entering the third week of excessive heat and humidity 
across the continental United States. These record high 
temperatures and extreme weather events will continue to put 
pressure on the country's energy sector, which is why it is 
more important than ever to work together on legislation that 
makes our energy infrastructure more efficient, more resilient, 
and more affordable.
    Electricity is a necessity to our everyday life, from the 
heating and cooling of our homes and buildings to the use of 
important medical technologies. The public health and safety of 
our constituents requires reliable access to electricity. The 
demand for electricity only continues to grow. We need to 
invest and upgrade our energy infrastructure in ways that will 
help optimize energy and help our country combat the ongoing 
impacts of climate change. And it is critical that we work 
together on this legislation, so that we can help expand and 
modernize our Nation's energy infrastructure, making it 
cleaner, safer, and more dependable, and more affordable for 
all Americans.
    Dr. Mulvaney, the renewable energy transition is a key 
component of addressing climate change by lowering harmful 
emissions and providing more Americans with clean energy. Many 
of these low-carbon technologies, however, still rely on 
critical minerals that need to be mined from the Earth. And 
like many renewable technologies, the solar panel supply chain 
is quite complex. Environmental technology standards are 
becoming more common, such as the ``ultra-low carbon'` standard 
that you are advising through the Green Electronics Council.
    What would ultra-low carbon technology mean, not only for 
emissions, but also for environmental justice communities, 
where residents are already overburdened by mineral processing 
and recycling facilities?
    Dr. Mulvaney. Thank you for that wonderful question. There 
are a few ways.
    First of all, I think, to your second point, recycling 
processes--you know, here I am talking about advocating for 
recycling technologies. They are often located in low-income 
communities, and have their own environmental justice 
consequences. So recycling is a partial solution to this, but 
we have to be cognizant of these particular--you know, 
particularly heavy metal issues. I am thinking of Southern 
California and the Exide facility that left a really bad 
legacy, and the communities there who are still dealing with 
that cleanup. So we have to be very, very careful about how we 
site new recycling facilities, and where we put these, and 
ensure that the communities and stakeholders are there.
    And I will just add one other potential source I think that 
is missing from the conversation so far is mining--industrial 
residues. So mining waste. A lot of these critical metals are 
actually onsite at existing mines already in tailings piles. I 
am thinking of coal ash as a potential source for rare earth 
elements. I mean, that stuff would be pretty easy to permit, 
and you could start processing that right away.
    And another example here, Rio Tinto, you know, a major 
mining company, just expanded their copper mining processing 
facility to also recover tellurium. Now, tellurium is about 
1,000 times more rare than rare earth elements, and it is a 
critical ingredient to the semiconductor technology that the 
major--largest manufacturer of solar panels in the United 
States, First Solar, is using. And they did that by not adding 
new greenfield mines, but by strategically investing in certain 
pieces of equipment on their own sites.
    So I hope I answered all of your questions.
    Ms. Blunt Rochester. You did--very, very comprehensive.
    I guess my next question to you is that many of my 
colleagues have already noted that H.R. 8053, the GRID Act, 
would address national security threats. Can you talk about how 
energy efficiency upgrades to critical defense facilities help 
to combat national security threats?
    Dr. Mulvaney. Well, I think that there are a lot of 
probably inefficient uses, historically, of energy on military 
facilities.
    So one, I think there is--just upgrading that equipment is 
going to benefit, generally, the national security, even just 
kind of, you know, new wires, new transformers. Things like 
that, I think, are really key there.
    But also the power of procurement, I think, a little bit, 
too. I think, you know, when you think about using the 
Department of Defense or government--Federal investments to 
kind of spur new industries, I think that that could also be a 
side effect of these investments.
    Ms. Blunt Rochester. Great, thank you. And my next question 
is for Mr. Greene. And I only have 20 seconds, so I might have 
to submit this to the record.
    So I will give you some food for thought. We were talking 
specifically earlier about H.R. 7962, of which I am a proud 
cosponsor. And my question, which I will ask you for the 
record, is how can legislation that focuses specifically on 
residential energy efficiency, such as this bill, help 
alleviate the growing cost to Americans, and help combat 
climate change?
    We will ask you on the record.
    [The information appears at the conclusion of the hearing.]
    Ms. Blunt Rochester. And thank you so much, Mr. Chairman, 
and I yield back the time.
    Mr. McNerney. The gentlelady yields back. The Chair now 
recognizes the gentleman from Virginia, Mr. McEachin.
    Mr. McEachin. Well, thank you, Mr. Chairman, and thank you 
for pulling this meeting together, and to our witnesses. I 
extend you greetings, and thank you for your testimony today.
    Mr. DeLaski, your organization works to advance standards 
that reduce emissions, and that contribute to climate change 
and public health harms. Whether through weatherization or 
through better appliance standards, what type of financial 
savings can be realized by reducing energy use, particularly 
for those of low to moderate income?
    And what might--what impacts might these savings have, sir?
    Mr. DeLaski. Thank you for the question. I will start with 
the weatherization program.
    The weatherization program is a proven successful program 
for lowering energy bills for low-income households. The 
typical savings, or the average savings for a participant--
participating household is $372. That is real money. That is 
real money that matters for households that are making 
decisions between, you know, how do I pay for my medicine, how 
do I pay for my medicine versus utility bills versus food. This 
is an incredibly important amount of savings that makes a real 
difference.
    I also want to point out that the program is very cost-
effective. The data that we have, and that I think is well 
documented, is that for every dollar invested in the 
weatherization program, $1.72 is generated in energy saving 
benefits. Those are direct benefits.
    And while those energy saving benefits are important, those 
same investments are resulting in an additional $2.78 in non-
energy benefits that are perhaps even more important for 
vulnerable communities. This is like lower asthma rates, 
reduced respiratory illness, money to pay for medications. This 
is, you know, better home comfort. So the benefits aren't just 
energy savings. They are making the homes more safe for the 
people who live there who are the lowest income households.
    The Appliance Standards Program also delivers very large 
savings for average households. The typical U.S. household is 
spending $500 less this year on their utility bills than they 
would be spending if we never had appliance standards. The 
program works because it has a proven track record of success, 
and it is delivering savings today. Those savings can be 
increased by improving our standards over time to keep pace 
with technological change in a cost-effective way.
    Mr. McEachin. Thank you for that. Sir, you have spoken 
today in support of H.R. 7962. And while this bill would do a 
great deal, one particular piece I am interested in is around 
the creation of a new demand response program for residential 
water heaters. As we move to electrify as much as possible and 
decarbonize our grid, demand response will be key.
    Can you discuss the benefits of demand response as it 
relates to water heaters, but also what this program, should it 
be signed into law, could demonstrate about how consumer demand 
response programs and technologies may work on a day-to-day 
basis?
    Mr. DeLaski. Yes. Thank you for that question.
    We have a bit of a chicken-and-egg problem with demand 
response. The chicken-and-egg problem is that, for this program 
to work for the average consumer, most demand response programs 
today are directed at large commercial and industrial 
customers. They are the ones who get the benefit of being able 
to shift their demand in response to price signals from the 
utility companies, and to save money to reduce their energy 
bills. It is--can be very hard for households to choose to 
participate in these programs, because they aren't designed for 
them and, in part, because they don't provide the scale.
    So to achieve scale, to be able to get significant demand 
response benefits, it is important that the technology be 
deployed in a lot of homes. Consumers may or may not choose to 
take advantage of it, but we need to ensure--what this bill 
would do is create the possibility for the Department to set 
requirements that would enable large numbers of water heaters 
deployed in people's homes to give them the choice of 
participating in demand response programs that can let them opt 
in to lower utility rates.
    Absent this kind of national requirement, it is a onesie/
twosie type of approach to achieving the scale that is needed 
to be able to let the average consumer take advantage of demand 
response and take advantage of the lower rates that are 
available at certain times a day. And those power resources are 
often the cleanest power resources that are being under-
utilized during parts of the day when we could be charging up 
our water heaters.
    Mr. McEachin. Thank you, sir.
    Mr. Mulvaney, the text of H.R. 1599 is language that says--
or directs the Department of Energy to improve technology that 
reuses and recycles critical energy resources. And you have in 
your testimony noted that, at least with regards to lithium ion 
batteries, we could do much better. Can you talk a little bit 
about that?
    And what would it look like for the Department of Energy to 
take the direction in this legislation, and what would be the 
benefits of so doing?
    And you have all of 20 seconds. I apologize to----
    Dr. Mulvaney. No, that is OK.
    I think either--some Federal electronic waste law could 
benefit collection. It spurred collection of this stuff in 
Europe. Or, if the private sector adopted probably industry-
wide extended producer responsibility that made sure the 
polluter paid for the end of life of their product.
    Mr. McEachin. [Inaudible.]
    Mr. McNerney. The gentleman yields. That concludes the 
member questions.
    I would like to thank our witnesses for participating in 
today's hearings. I remind members that, pursuant to committee 
rules, they have ten business days to submit additional 
questions for the record to be answered by the witnesses who 
have appeared. I ask the secretary to respond promptly to any 
questions you may receive.
    Before we adjourn, I receive unanimous consent to enter the 
following questions--records into the testimony for the record.
    [Pause.]
    Mr. McNerney. OK. I am going to backtrack a little bit. We 
have one more member for questions.
    Mr. Joyce from Pennsylvania, you are recognized for 5 
minutes.
    Mr. Joyce. Thank you very much. First, I want to thank the 
chairman and the Ranking Member Upton for allowing me to waive 
on to this important subcommittee hearing. And thank you to the 
witnesses for appearing with us here today.
    As we have heard from many of my colleagues, America is in 
the midst of an energy crisis, a crisis that was created by the 
Biden Administration. Each and every day I hear from 
constituents who are shocked by the skyrocketing gas and 
electricity prices that they face each month. What America 
needs right now is more affordable, reliable, and clean 
baseload power.
    Our nation has the ingenuity and the capability to lead the 
world in this transition. By investing in innovative 
technologies like carbon capture and hydrogen storage, we can 
take advantage of the energy reserves beneath the feet of my 
constituents, and keep our coal and our natural gas power 
plants online.
    On Sunday the Financial Times reported that Germany would 
reopen several shuttered coal plants in order to avert the 
potential natural gas shortage for the upcoming winter months. 
Germany will fire up these coal plants, despite the fact that 
the country has committed to phasing out coal by 2030. 
Meanwhile, its three remaining active nuclear plants are 
scheduled to go offline later this year, and the government has 
no plans to extend them.
    Here in the U.S. we are facing a similar sort of energy 
crisis because we are not adequately taking advantage of the 
resources that are under our feet, whether it is coal, natural 
gas, or nuclear energy.
    My first question is for Mr. Pugliaresi.
    Mr. Pugliaresi, what steps can we take in order to learn 
from Germany's errors, so that we can smartly transition to 
clean, reliable baseload power, while at the same time 
regaining our energy dominance?
    Mr. Pugliaresi. I think at first we have to have a 
realistic view about--that some of the alternative fuels we are 
trying to promote now have limitations that are not fully 
appreciated, particularly by both government policymakers and 
the public.
    And in the case of Germany, it is quite clear, when you 
choose a very narrow set of fuels--in this case they had a high 
reliance upon gas and wind--solar in Germany is pretty 
limited--and it might seem stable, it might be--it might make a 
lot of sense in the beginning, but it is like an investment 
portfolio. The--you face a lot of risks when you make too 
narrow a choice. So we need a widely diverse set of very 
productive fuels to power our economy.
    Mr. Joyce. Mr. Pugliaresi, I agree with you. I think that 
you have elicited that we need reliable and resilient and 
diversified power sources to maintain the power grid. And it is 
more important than ever, as we see an evolving market forces.
    As more intermittent resources--such as you mentioned, wind 
and solar--get brought online, and more EVs are placed on the 
road, the grid must accommodate demands in ways that it was 
never designed to do so. How can we encourage the collaboration 
with grid operators and utilities so as to better plan for the 
future, and to preserve and promote the resiliency that we need 
to see in the grid?
    Mr. Pugliaresi. So I think we have under-invested in our 
grid for a lot of reasons. It has been kind of an afterthought. 
And the time has come now where utility systems and the 
regional--you know, the transmission organizations, we are 
going to have to put a lot more money into the grid, and a lot 
more effort in upgrading it and modernizing it so that it can 
undertake a wide range of fuel sources and generating power.
    Mr. Joyce. My final question is for Mr. Lieberman.
    Your testimony touches on reining in government spending 
and strengthening consumer and taxpayer protections. 
Unfortunately, this Administration seems focused on expanding 
Federal agencies on the taxpayers' dime, while using regulation 
to prevent unlocking the resources that would actually provide 
the consumer with some necessary relief. Permitting is a big 
part of this.
    Could you speak to the energy infrastructure permitting 
reforms that might allow the U.S. to unlock its energy 
potential and bring down the prices, the prices that the 
average American is facing right now?
    Mr. Lieberman. I remember when President Biden mentioned 
that there were 9,000 permits that weren't being acted upon, 
oil and gas permits. And I looked into it, and others looked 
into it. And of those 9,000, there is a number of other ways 
that the government can actually stop the actual process of 
drilling, even for permitted projects. There is just so much 
going on. There is so many different ways to block production, 
and they are all being aggressively used right now.
    One thing I would mention is the National Environmental 
Policy Act, or NEPA. The previous Administration made some 
modest but useful reforms to that that I think have been--that 
have been largely reversed by this Administration. That is 
heading in the wrong direction. We need to have a much more 
streamlined permitting process, or the same mines we are 
talking about today we will be talking about them five or ten 
years from now.
    Mr. Joyce. The streamlining of the permitting process is 
absolutely necessary.
    Mr. Chairman, thank you. I appreciate you allowing me to 
waive on to this important hearing.
    And I thank all the witnesses for your participation.
    Mr. McNerney. The gentleman yields.
    At this time I request unanimous consent to enter the 
following documents into the record: No. 1, a June 21st, 2020 
letter from the Air Conditioning, Heating, and Refrigeration 
Institute to the Committee on Energy and Commerce in support of 
H.R. 7962; a June 22nd--June 21st, 2022 letter from the 
National Community Action Foundation in support of H.R. 7947; 
No. 3, a June 22d, 2022 letter from the U.S. Department of 
Energy on the underlying legislation of today's hearing; No. 4, 
a June 22d, 2022 letter from the National Mining Association in 
support of H.R. 1599; No. 5, an October 14th, 2021 letter from 
Representative Don Young on H.R. 5292; and last, No. 6, a June 
21st, 2022 letter from the Joint Associations in support of 
H.R. 7962.
    Without objection, so ordered.
    Mr. McNerney. At this time the subcommittee is adjourned.
    [Whereupon, at 2:22 p.m., the subcommittee was adjourned.]
    [Material submitted for inclusion in the record follows:]
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